ANNUAL REPORT - Indonesia-Investments · PT Asahimas Flat Glass Tbk ANNUAL REPORT 2015 02 For the years ending December 31 ((in million Rupiah, unless specially stated.) Net Sales

2015ANNUAL REPORT

Establish the basis fornext growth in front of new era of

competition,while keep challenging to further operational

excellence and CS improvement

ANNUAL REPORT 2015 PT Asahimas Flat Glass Tbk01

FINANCIAL HIGHLIGHTSSTATEMENT OF COMPREHENSIVE INCOMESTATEMENT OF FINANCIAL POSITION (BALANCE SHEET)COMPOSITION OF 2015 NET SALES VALUEKEY FINANCIAL RATIOSPT ASAHIMAS FLAT GLASS TBK (AMFG)'S SHARE INFORMATION

BOARD OF COMMISSIONERS' REPORTBOARD OF COMMISSIONERS' SUPERVISIONASSESSMENT OF THE COMMITTEE PERFORMANCE UNDER BOARDOF COMMISIONERSASSESSMENT OF THE BOARD OF DIRECTORS' PERFORMANCEA VIEW ON THE COMPANY'S BUSINESS PROSPECTSBOARD OF COMMISSIONERS' COMPOSITIONAPPRECIATION TO STAKEHOLDERS

BOARD OF DIRECTORS' REPORTTHE COMPANY'S PERFORMANCECHALLENGESBUSINESS STRATEGYBUSINESS PROSPECTSGOOD CORPORATE GOVERNANCE IMPLEMENTATIONBOARD OF DIRECTORS' COMPOSITIONAPPRECIATION TO STAKEHOLDERS

COMPANY PROFILETHE COMPANY'S NAME AND ADDRESSTHE COMPANY'S BRIEF HISTORYTHE COMPANY'S BUSINESS ACTIVITIES AND PRODUCTSTHE COMPANY'S ORGANIZATIONAL STRUCTUREMISSION AND VISIONBOARD OF COMMISSIONERS AND BOARD OF DIRECTORSBOARD OF COMMISSIONERS AND BOARD OF DIRECTORSAPPOINTMENT IN 2015BOARD OF COMMISSIONERS' PROFILEBOARD OF DIRECTORS' PROFILECHANGES IN THE COMPOSITION OF BOARD OF COMMISSIONERSANDBOARD OF DIRECTORS AFTER THE REPORTING PERIODHUMAN RESOURCES AND DESCRIPTION OF ITS DEVELOPMENTSHAREHOLDER INFORMATION AND SHARE OWNERSHIPPERCENTAGEINFORMATION ON ULTIMATE SHAREHOLDER AND CONTROLLINGSHAREHOLDERCOMPANY STRUCTURE UP TO ULTIMATE SHAREHOLDER AS OFDECEMBER 31, 2015SUBSIDIARIESCHRONOLOGY OF SHARE LISTING AND CHANGES INTHE NUMBER OF SHARESCAPITAL MARKET SUPPORTING INSTITUTIONS AND PROFESSIONSAWARDS AND CERTIFICATIONS

MANAGEMENT'S DISCUSSION AND ANALYSISOPERATIONAL REVIEW BY BUSINESS SEGMENTFINANCIAL PERFORMANCE ANALYSISSOLVENCYACCOUNTS RECEIVABLE COLLECTIBILITY

CAPITAL STRUCTURE AND MANAGEMENT POLICY ON CAPITALSTRUCTUREMATERIAL BINDING FOR CAPITAL GOODS INVESTMENTMATERIAL INFORMATION AND FACTS AFTER THE REPORTINGPERIODBUSINESS PROSPECTSCOMPARISON BETWEEN PROJECTION AT THE BEGINNING OFFINANCIAL YEAR WITH THE ACHIEVED RESULTSTHE COMPANY'S TARGETS IN 2016MARKETINGDIVIDEND POLICYDIVIDEND PAYMENTREALIZATION OF THE USE OF PROCEEDS FROM THE IPOMATERIAL INFORMATION ON INVESTMENT, EXPANSION,DIVESTMENT, ACQUISITION OR DEBT/CAPITALRESTRUCTURINGAMENDMENTS TO LAWS AND REGULATIONSCHANGES IN ACCOUNTING POLICY

CORPORATE GOVERNANCEBOARD OF COMMISSIONERSBOARD OF DIRECTORSGENERAL MEETING OF SHAREHOLDERSAUDIT COMMITTEENOMINATION AND REMUNERATION COMMITTEERISK MANAGEMENT AND INSURANCE COMMITTEEDISCIPLINE AND COMPLIANCE COMMITTEECORPORATE SECRETARYCORPORATE INTERNAL AUDITINTERNAL CONTROL SYSTEMRISK MANAGEMENT SYSTEMSIGNIFICANT CASEADMINISTRATIVE SANCTIONSCODE OF CONDUCT AND CORPORATE CULTURESHARE OWNERSHIP PROGRAMWHISTLE BLOWING SYSTEM

CORPORATE SOCIAL RESPONSIBILITY &ENVIRONMENTENVIRONMENTAL RESPONSIBILITYEMPLOYMENT PRACTICESOCCUPATIONAL HEALTH AND SAFETYSOCIAL DEVELOPMENT AND COMMUNITY EMPOWERMENTOTHER SOCIAL AIDS PROGRAMSTHE COMPANY'S PRODUCT LIABILITYCUSTOMER COMPLAINTS FACILITY, NUMBER AND HANDLING

STATEMENT OF THE BOARD OFCOMMISSIONERS AND THE BOARD OFDIRECTORS ON THE RESPONSIBILITY FORTHE 2015 ANNUAL REPORT

FINANCIAL STATEMENTS ANDINDEPENDENT AUDITORS' REPORT

TABLE OF CONTENTS

020203040404

050505

05060606

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11121213141414

151619

192020

21

2222

22232323

11

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ANNUAL REPORT 2015PT Asahimas Flat Glass Tbk 02

For the years ending December 31((in million Rupiah, unless specially stated.)

Net Sales

Cost of Sales

Gross Profit

Expenses

Operating Profit

Finance Income

Profit Before Income Tax

Income Tax Expense

Profit

Other Comprehensive Loss

Total Comprehensive Income

Total number of Outstanding Shares (Million)

Operating Profit Per Share (in full Rupiah)

Earnings Per Share (in full Rupiah)

Nominal Value Per Share (in full Rupiah)

2013* 2015

3,216,480

(2,488,570)

727,910

(298,535)

429,375

21,378

450,753

(112,395)

338,358

(66,874)

271,484

434

989

780

500

FINANCIAL HIGHLIGHTS

2014*

3,672,186

(2,760,739)

911,447

(348,453)

562,994

42,169

605,163

(141,011)

464,152

(21,845)

442,307

434

1,297

1,069

500

Net Sales (in billion Rupiah)

4,000

3,000

2,000

1,000

0

3,666

2013* 2014* 2015

3,2163,672

Operating Profit (in billion Rupiah)

600

500

400

300

200

100

0

2013* 2014* 2015

429

563

3,665,989

(2,868,674)

797,315

(368,623)

428,692

35,571

464,263

(122,917)

341,346

(17,843)

323,503

434

988

786

500

429

* As restated

STATEMENT OF COMPREHENSIVE INCOME AND OTHER COMPREHENSIVE INCOME


Assets 2013* 2015

Current Assets

Investment at Equity method

Fixed Assets, Net

Deferred Tax Assets

Other Non-Current Assets, Net

Total Assets

Current Liabilities

Bank Loans

Current Liabilities

Total Current Liabilities

Non-Current Liabilities

Employees Benefit Obligation

Total Non-Current Liabilities

Total Liabilities

Equity

Total Liabilities and Equity

Net Working Capital

1,980,116

1,575

1,478,147

72,445

29,401

3,561,684

-

473,960

473,960

393,871

393,871

867,831

2,693,853

3,561,684

1,506,156

STATEMENT OF FINANCIAL POSITION (BALANCE SHEET)As of December 31 (in million Rupiah)

2014*

Liabilities and Equity 2013* 20152014*

2,263,728

1,575

1,530,836

79,954

70,032

3,946,125

-

398,238

398,238

446,447

446,447

844,685

3,101,440

3,946,125

1,865,490

Total Assets (in billion Rupiah)

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

0

4,270

2013* 2014* 2015

3,5623,946

Total Equity (in billion Rupiah)

3,500

3,000

2,500

2,000

1,500

1,000

0

3,390

2013* 2014* 2015

2,694

3,101


2,231,181

1,575

1,822,896

75,378

139,245

4,270,275

-

479,376

479,376

400,676

400,676

880,052

3,390,223

4,270,275

1,751,805

* As restated


AUTOMOTIVEGLASS

FLATGLASS

EXPORT DOMESTIC

COMPOSITION OF THE 2015NET SALES VALUE

KEY FINANCIALRATIOS

In % (percentage)

Gross Profit to Net Sales

Operating Profit to Net Sales

Operating Profit to Equity

Operating Profit to Total Assets

Profit to Total Assets

Profit to Equity

Current Assets to CurrentLiabilities

Total Liabilities to Equity

Total Liabilities to Total Assets

2013* 2015

22.6

13.3

15.9

12.1

9.5

12.6

417.8

32.2

24.4


2014*

24.8

15.3

18.2

14.3

11.8

15.0

568.4

27.2

21.4

42%

58%

27%

73%

I

II

III

IV

7,100

7,300

8,825

8,175

QuarterHarga (Rp)

Highest

TransactionVolume(Unit)

Market Capitalizationin million

(Rp)Lowest Closing

6,425

6,700

6,550

6,250

7,100

7,150

7,450

8,050

575,400

419,400

2,657,800

17,987,500

3,081,400

3,103,100

3,233,300

3,493,700

Period : January - December 2014

21.7

11.7

12.6

10.0

8.0

10.1

465.4

26.0

20.6

I

II

III

IV

7.100

7.300

8.825

8.175

QuarterPrice (Rp)

Highest

TransactionVolume(Unit)

Market Capitalizationin million

(Rp)Lowest Closing

6.425

6.700

6.550

6.250

7.100

7.150

7.450

8.050

575.400

419.400

2.657.800

17.987.500

3.081.400.000.000

3.103.100.000.000

3.233.300.000.000

3.493.700.000.000

Period : January - December 2015

PT ASAHIMAS FLAT GLASS TBK (AMFG)'S SHARE INFORMATION

Total Listed Shares : 434,000,000

8,600

7,700

7,200

7,450

7,100

6,750

4,800

5,400

7,700

7,175

5,800

6,550

5,040,100

6,056,700

2,758,200

2,515,500

3,341,800

3,113,950

2,517,200

2,842,700

* As restated


Dear Shareholders,We are grateful to God Almighty and feel pleased to have accomplished our supervisory duties on the Board of Directors' performancein carrying out the Company's management in 2015.

The economic slowdown in 2015 was a reasonably tough challenge for the industry players. National economic condition was stronglyinfluenced by the global economic condition that was still filled with uncertainties.

The protracted plan to increase interest rate by the Fed and China's deteriorating economic condition were also a concern for theIndonesian economy. Those external factors directly affected on a decrease in non-oil exports and a significant depreciation of Rupiah,which in turn adversely affected the Company's market share in the property and automotive sectors as demands in these two sectorsalso decreased in 2015.

BOARD OF COMMISSIONERS' SUPERVISION

Throughout 2015, the Board of Commissioners carried out our supervisory function on the policies concerning the Company'soperations. The Board of Commissioners enhanced our supervision by conducting Board of Commissioners meetings and our jointmeetings with the Board of Directors, providing advices on policies and business strategies undertaken by the Board of Directors,and continuing to oversee and review the implementation of such advices.

In order to improve the effectiveness of Committee's performance under the Board of Commissioners, in 2015, we exercisedrestructuring of the Committees, i.e. Risk Management Committee position was changed from under the Board of Commissionersto become under the Board of Directors; Compliance Committee under the Board of Commissioners was merged with DisciplinaryCommittee under the Board of Directors to become Discipline and Compliance Committee under the Board of Directors; and ExecutiveCommittee was dissolved.

The Board of Commissioners also made amendment to Nomination and Remuneration Committee in order to comply with OtoritasJasa Keuangan (OJK) Regulation No. 34/POJK.04/2014 by, among others, appointing an independent Commissioner as Chairman ofthe Committee.

PERFORMANCE ASSESSMENT OF COMMITTEES UNDER THE BOARD OF COMMISSIONERS

The Committees under the Board of Commissioners has done a very good job in their functions. Audit Committee and Nominationand Remuneration Committee have reported their duties and responsibilities on a regular basis. These Committees have assistedthe Board of Commissioners in overseeing the Company's operations, including the Board of Directors performance, by, among others,ensuring the Company's compliance to Good Corporate Governance (GCG) and prevailing regulations. The Board of Commissionersalso continuously evaluates the Company's GCG implementation based on ASEAN Corporate Governance Scorecard and views thatthe Company's GCG implementation in 2015 has been improved.

The Board of Commissioners has received and reviewed the Board of Directors' report and the Company's financial statements forthe year ended December 31, 2015 audited by Public Accountants Firm Siddharta Widjaja & Partners (a member firm of KPMGInternational). The Board of Commissioners views that the financial statements are already in accordance with the Statements ofFinancial Accounting Standards (SFAS) and capital market regulations.

In the 2015 financial year, the Board of Commissioners carried out its duties by performing the following:

i. supervising and advising the Board of Directors concerning their policies;ii. restructuring the Committees under the Board of Commissioners including approving the Committees' Charter;iii. giving approval on the Board of Directors' actions that should be approved by the Board of Commissioners,iv. carrying out the mandates given by the General Meeting of Shareholders (GMS) for:

• determining the amount of remuneration for each member of the Board of Commissioners and Board of Directors byconsidering the limits as has been set out in the Annual GMS;

• appointing Public Accountants Firm to audit the Company's books for the 2015 financial year and determining the honorariumand other requirements.

v. approving the Annual Budget including the 2015 CSR budget.vi. examining the recommendations made by the Audit Committee and the Nomination and Remuneration Committee.

ASSESSMENT OF THE BOARD OF DIRECTORS' PERFORMANCE

The impact of the global economic slowdown still engulfed throughout 2015, leading to a decline in the demand for the Company'sproducts both in the property and automotive sectors in the domestic market. These two sectors are the major market of theCompany's business. However, the Board of Commissioners views that the Board of Directors has properly sustained the Company'spositive performance in 2015. The Board of Directors' performance is reflected in the financial statements of the 2015 financial yearwhere despite the economic downturn, the Company still managed to record Rp 3,67 trillion net sales and Rp429 billion operatingprofit, although the figures were lower than those achieved in 2014.

BOARD OF COMMISSIONERS' REPORT


Our appreciation goes to the Board of Directors for their effort in the construction of a new flat glass factory in Cikampek, West Java,which has been implemented according to the planned schedule. The Board of Commissioners hopes the factory construction canbe completed on time and within the pre-determined budget.

VIEWS ON THE COMPANY'S PROSPECTSThe Board of Commissioners hopes the business prospects in 2016 will be better compared to 2015. A series of Government policieslaunched in mid-2015 to stimulate the economic growth is expected to bring positive impacts.

Based on the macro data we collected, the economic growth in 2016 is projected at the level of 5.5% with inflation rate maintainedat the level of 4.7% and rupiah exchange rate assumption against US Dollar amounting to Rp13,400 per USD, while BI Rate is expectedto decline about 25 bps to 50 bps.

The above indicators are expected to have a positive influence on the property and automotive markets, two major markets of theCompany's products, and will certainly strengthen the Company's business performance in 2016.

Furthermore, in welcoming the ASEAN Economic Community (AEC) in early 2016, the Board of Commissioners requests the Boardof Directors to continually improve its efficiency and competitiveness as well as continously make innovations so that the Company'sproducts can be more competitive in domestic and international markets.

The Board of Commissioners has examined and approved the business projections prepared by the Board of Directors in the 2016Annual Budget and views that the business projection is presented in a proper and reasonable manner and can be realized inaccordance with the planned targets.

COMPOSITION OF THE BOARD OF COMMISSIONERS

The Annual General Meeting of Shareholders (AGMS) held on June 5, 2015, approved the change of composition of the Board ofCommissioners. Masahiro Takeda was elected as Vice President Commissioner replacing Kimikazu Ichikawa and Tjahjana Setiadhi waselected as Commissioner replacing Andi Purnomo, each will serve for the term of office ended up to the closing of the Company's2016 AGMS. The Board of Commissioners would like to thank Kimikazu Ichikawa and Andi Purnomo for having done a good job.

The Company's Board of Commissioners is composed of six (6) members and this composition has complied with OJK Regulation No.33/POJK.04/2014. Detailed composition and profile of the Board of Commissioners can be seen on the pages describing the Boardof Commissioners and Board of Directors' composition.

APPRECIATION TO STAKEHOLDERS

On this occasion, the Board of Commissioners would like to thank all stakeholders for their assistance and cooperation which haveenabled us to carry out our supervisory function and ensure a consistent implementation of Good Corporate Governance in theCompany.

Our deep appreciation also goes to the Board of Directors, Management and all employees who have worked hard and demonstratedan exceptional dedication in realizing the mission and vision of the Company. Hopefully, the support given to the Company will sustainin the coming years.

Closing our Report, we hope that all our measures and efforts are always blessed by God Almighty.

BOARD OF COMMISSIONERS' REPORT

TAN PEI LINGPresident Commissioner

MASAHIRO TAKEDAVice President Commissioner

TJAHJANA SETIADHICommissioner

TAKEO TAKEICommissioner

BENYAMIN SUBRATAIndependent Commissioner

HIDEYA TANAKAIndependent Commissioner

Board of Commissioners


BOARD OF DIRECTORS' REPORT

Dear distinguished Shareholders,2015 was a year filled with challenges for the Company in terms of the global and national economic conditions. Indonesia'seconomy in 2015 grew 4.79%, a slight decrease compared with the 5.02% growth in 2014.

Indonesian economic downturn in 2015 impacted on the weakening of the people's purchasing power, which in turn affectedthe property and automotive sectors, the major markets for the Company's products. Nevertheless, despite the economicdownturn, we are grateful that the Company was still able to record a positive result in 2015.

COMPANY'S PERFORMANCEThe decreasing commodity and mining prices in the global market in 2015 and Indonesia's position as one of the exportingcountries contributed to the weakening of the people's purchasing power at home. This was shown by declining sales in theproperty and automobile markets, the major markets of the Company's products. The Company recorded Rp3.67 trillion net salesin 2015 or Rp6 billion lower than the net sales in 2014.

The Company's Flat Glass Business Unit in 2015 recorded Rp 2.67 trillion net sales, or grew 5%, while the Automotive GlassBusiness Unit recorded Rp1 trillion net sales or decreased by 12% compared to 2014. This decrease was primarily due to thedeclining car sales in the country that affected the demand for the Company's automotive glass.

In 2015, the Company's domestic sales amounted to Rp2.14 trillion or decreased by 10% compared to 2014, while the exportsales reached Rp1.52 trillion, a 18% increase compared to 2014. The Company, equipped with the right marketing strategy andmarketing network, managed to increase its export sales to compensate for the decline in the domestic sales. In addition, thestrengthening exchange rate of USD against the Rupiah also contributed positively to the Company's export sales.

MAMPEI CHIYODA, President Director E. DAVID SATRIA SOETEDJA, Vice President Director



In 2015, there was a hike in several domestic cost components, i.e. an increase in provincial minimum wage (UMP), raw materialcost and transportation cost. The increase in these costs during the economic slowdown was one of the factors leading to adecrease in the Company's performance. This can be observed from the breakdown of the Company's performance in 2015compared to 2014 as follows:

1. Gross profit amounted Rp797 billion or declined by 13% compared to 2014 amounting to Rp 911 billion.2. Gross profit margin was 22% or down 25% compared to 2014.3. Operating profit amounted to Rp429 billion or declined by 24% compared to 2014 amounting to Rp 563 billion.4. Operating profit margin was 12% or down 15% compared to 2014.5. Income was to Rp341 billion or decreased by 26% compared to 2014 amounting to Rp 464 billion.

In 2014, the Company announced Information Disclosure to the public in connection with the Company's plan to build a new FlatGlass Factory in Cikampek, West Java, with a total production capacity of 210,000 tons per year and USD154.9 million investmentvalue.

The factory construction commenced in late 2014 and was on +66% progress by end of 2015. The construction was targeted forcompletion in the second half of 2016. The Company expects the factory construction can run well in accordance with the plannedschedule and budget.

CHALLENGES

In the course of realizing its business and operational targets in 2015, the Company encountered several challenges which weremainly related to external conditions. The challenges were as follows:

1. Slowdown in the growth of the construction and automotive sectors resulted from the economic downturn at home &overseas;

2. Increase in labor costs due to rising UMP (Regional Minimum Wage) & UMSK (City/Regency Minimum Wage);3. Increase in the cost of imported raw materials;4. Increase in the distribution and transportation cost;5. Increase in glass imports resulted in a stringent competition in the domestic market.

BUSINESS STRATEGIES

In addressing the challenges faced in 2015, the Company made every effort to maintain its performance. The policies carried outin 2015 were as follows:

1. Strategic Cost Reduction:• Productivity enhancement;• Cost production efficiency;• Avoiding inefficiency.

2. Adjusted the selling price of the Company's products.3. Increased export sales volume.4. Continued to improve supply chain quality and became a supplier that was able to provide solutions to optimize the assets

of AGC Group.5. Participated actively in Business Association activities to give input on the industry conditions and the associated various

policies.

BUSINESS PROSPECT

Entering 2016, the Company will continue to observe economic conditions both at home and abroad. Based on the macroeconomicbasic assumptions used as the basis to prepare the 2016 State Budget Plan, the Government has targeted a 5.5% economic growthin 2016 and 4.7% inflation assumption. Bank Indonesia rate has also indicated a downward trend in early 2016. In addition, thegovernment's plan to accelerate infrastructure development in all parts of Indonesia is expected to run according to the plan.The Company expects all these indicators can be positively correlated to the Company's performance.

Bank Indonesia's policy on BI rate reduction is also expected to stimulate the property and automotive sectors in 2016, whichin turn will encourage a stronger growth of the Company's business.



The Company must remain aware of the potential slowdown in the China's economy, which is projected to grow on a slower pacein 2016 and likely to affect the global economy as well as bring a direct impact on the Company's export performance in 2016.The Company will continue the efforts to improve its performance.

CORPORATE GOVERNANCE IMPLEMENTATION

The Company continuously strives to comply with Good Corporate Governance (GCG) Roadmap issued at the beginning of 2014and Corporate Governance Manual for Issuers and Public Companies issued by Otoritas Jasa Keuangan (OJK) in 2015. Throughout2015, some improvements were made, among others: the mechanism and process of GMS announcement and holding wereadapted to the prevailing regulation and mechanism of GMS order. In addition, the Company also completed Board of CommissionersManual, Board of Directors Manual and Nomination and Remuneration Committee Manual in 2015. The Company also adjustedits Website, a major gateway for stakeholders to access the Company's information, to comply with OJK Regulation.

In order to ensure an effective GCG implementation, in 2015 the Company made adjustments to the Committees under the Boardof Directors. Disciplinary Committee under Board of Directors was developed into the Disciplinary and Compliance Committee.The Board of Directors also added 1 (one) new Committee, i.e. Risk Management and Insurance Committee. The Company expectsthe adjustments to the Committees will encourage a more proper and effective implementation of GCG in the Company. Detailedinformation on this GCG implementation can be found in the Corporate Governance chapter.

BOARD OF DIRECTORS' COMPOSITION

The Annual General Meeting of Shareholders (AGMS) on June 5, 2015 at the Hotel Holiday Inn Jakarta Kemayoran decided toapprove the change to the Board of Directors, i.e: to appoint E. David Satria Soetedja as Vice President Director replacing TjahjanaSetiadhi; to appoint Sadayoshi Shinotsuka, Michitaka Goto and Mohamad Amien respectively as Director for the term of officeup to the closing of the AGMS in 2017. The AGMS also reappointed other Directors who finished his term of office in 2015 witha term of office up to the closing of the 2017 AGMS. The Board of Directors extends our thanks and appreciation to TjahjanaSetiadhi, Yoshiki Inoue and Yasushi Kawamoto for having done a good job in executing their duties.

The number and composition of the Board of Directors are already in accordance with the OJK regulation No. 33/POJK.04/2014.Complete details on the composition and profile of the Board of Directors can be found in the chapter describing about the Boardof Commissioners and Board of Directors composition.

APPRECIATION TO STAKEHOLDERS

On behalf of the Board of Directors, we would like to express our sincere thanks and appreciation to all employees and partnerswho have contributed to the Company's sustained development up to date. Our gratitude is also extended o for the support ofall Customers, Suppliers, Principals, Shareholders, Board of Commissioners, committees and all Stakeholders. The Board ofDirectors expects this strong cooperation can be continuously enhanced in order to make changes and improvements for us allon an ongoing basis.

MAMPEI CHIYODAPresident Director

E. DAVID SATRIA SOETEDJAVice President Director

Board of Directors


BOARD OF DIRECTORS

7

64123

1110

95

8

1. MAMPEI CHIYODA, President Director

2. E. DAVID SATRIA SOETEDJA, Vice President Director

3. NAOMASA TANIGUCHI, Director

4. MITSUHIRO YOSHIKADO, Director

5. SADAYOSHI SHINOTSUKA, Director

6. PRASETYO AJI, Director

7. TJIO FERRY SUSANTO, Director

8. MICHITAKA GOTO, Director

9. MOHAMAD AMIEN, Director

10. TATSUO SUGIYAMA, Director

11. RUSLI PRANADI, Independent Director


COMPANY PROFILE

THE COMPANY'S NAME AND ADDRESS

Head Office & Factory in JakartaJl. Ancol IX/5, Ancol BaratJakarta Utara 14430, IndonesiaTel : (62-21) 690 4041 ( 8 lines )Fax : (62-21) 691 8820, 690 4705Website : www.amfg.co.id

Head Office & Factory in SidoarjoDesa Tanjungsari, Kecamatan TamanKabupaten Sidoarjo 61257Jawa Timur, IndonesiaTel : (62-31) 788 2383, 788 2135Fax : (62-31) 788 2842, 788 2149

Head Office & Factory in CikampekBukit Indah Industrial Park, Sektor IABlok J-L, Cikampek 41373Jawa Barat, IndonesiaTel : (62-264) 351 711 ( hunting)Fax : (62-264) 351 710


BRIEF HISTORY OF THE COMPANY

A. Establishment

The Company is a Foreign Investment Company (PMA) that was established under the name PT Asahimas Flat Glass Co. Ltdbased on Notarial Deeds No.4 dated October 7, 1971, and No. 9 dated January 6, 1972 passed before Koerniatini Karim,Notary in Jakarta. The Deeds were already approved by the Minister of Justice of the Republic of Indonesia by virtue of DecreeNo.J.A.5/5/19 dated January 17, 1972 and published in the State Gazette No. 18 dated March 3, 1972 and its SupplementNo. 83/1972.

B. Amendments to Articles of Association

The Company's Articles of Association have been amended several times, i.e. the Changed of the Company's name from PTAsahimas Flat Glass Co., Ltd., to become PT Asahimas Flat glass Tbk based on Notarial Deed no. 73 dated June 26, 1998 thatwas passed before Amrul Partomuan Pohan SH, LL.M, notary in Jakarta, and approved by Indonesian Ministry of Justice withthe Decree no. C2-12065.HT.01.04 Th.98 dated August 25, 1998 and published in the State Gazette no. 6510 dated November24, 1998, Supplement No. 94/1998.

The expansion of the Company's business activity in the glass industry and export import, as set forth in NotarialDeed No. 54 dated May 28, 2003 executed before Amrul Partomuan Pohan SH, LL.M, Notary in Jakarta, and was approvedby the Minister of Law and Human Rights of the Republic of Indonesia by virtue of Decree No. C-14423.HT.01.04.TH.2003dated June 24, 2003 and was published in the State Gazette No. 7532 dated August 26, 2003 and its supplement No. 68/2003.

The Company's Articles of Association were already adjusted to Law No. 40/2007 regarding Limited Liability Companies asset forth in Notarial Deed No. 1, dated July 1, 2008 passed before Dr. Amrul Partomuan Pohan SH, LL.M, notary in Jakartaand approved by the Minister of Law and Human Rights of the Republic of Indonesia by virtue of Decree No. AHU 41881.AH.01.02year 2008 dated July 17, 2008, published in the State Gazette No. 84 dated October 17, 2008 and its supplement No.20228/2008.

The Company's Articles of Association were already adjusted to Bapepam & LK Regulation No. IX.J.1 concerning Main Substancesof Articles of Association of the Company Performing Public Offering of Equity Security and Publicly Listed Company as setforth in the Notarial Deed No. 19, dated February 27, 2009 passed before Dr. Amrul Partomuan Pohan SH, LL.M, notary publicin Jakarta and approved by the Minister of Justice and Human Rights of the Republic of Indonesia by virtue of Decree No.AHU-.AH.01.10.02127 Year 2009 dated March 19, 2009, published in the State Gazette No. 36/2009 and its supplement No.317/2009.

The most recent amendment to the Company's Articles of Association was set forth in the Notarial Deed No. 45 dated June5, 2015 by Dr. Irawan Soerodjo SH. MSi. regarding amendments to and representation of the Company's Articles of Association,including to comply with Otoritas Jasa Keuangan, The Deed was already approved by the Minister of Law and Human RightsNo. AHU-AH.01.03-0946820 dated June 30, 2015, while the publication of the Deed in the State Gazette was still underprocess.

C. Change of Status to become Public Company

Based on the Statement Letter of the Chairman of Capital Market Supervisory Agency (“Bapepam”) No. S-1323/PM/1995dated October 18, 1995, the Company initiated public offering of 86,000,000 shares and since December 18, 2000 all of theCompany's shares have been listed on Bursa Efek Jakarta (now Bursa Efek Indonesia).

THE COMPANY'S BUSINESS ACTIVITIES AND PRODUCTS

Based on its Articles of Association, the Company's intention and objectives are to establish and run glass industry as well asexport-import and quality certification of glass. The Company's products are divided into 2 categories:

• Flat Glass including Mirror Glass• Safety Glass including Automotive Glass

COMPANY PROFILE


Nomination &Remuneration Committee Audit Committee Board of Directors

Discipline & ComplianceCommittee

Internal AuditPatikkos Siahaan

Corporate SecretaryChristoforus

Flat Glass GeneralDivision Corporate Automotive Glass

General Division

Sales & Marketing CenterAndreas S. Wirawan

Quality Assurance CenterSutrisno

Cikampek FactorySamuel N. Setyono

Corporate AffairsChristoforus

Corporate MISDadang Sudrajat

Corporate Control &Finance

Bama S. Hadi

Corporate HRD &Administration

Tjio Ferry Susanto

Corporate HSE CoordinationE. David Satria Soetedja

Purchase & Logistic CenterE. David Satria Soetedja

Engineering CenterAndreas Andre

Sales & Marketing CenterM. Amien

Production Planning &Order Control Office

M. Amien

Quality Assurance OfficeSander Liberti Sembiring

Jakarta FactoryRichard Andre S.

Sidoarjo FactoryLilik Roesianto

THE COMPANY’S ORGANIZATIONAL STRUCTURE


Nomination &Remuneration Committee Audit Committee Board of Directors

Discipline & ComplianceCommittee

Internal AuditPatikkos Siahaan

Corporate SecretaryChristoforus

Flat Glass GeneralDivision Corporate Automotive Glass

General Division

Sales & Marketing CenterAndreas S. Wirawan

Quality Assurance CenterSutrisno

Cikampek FactorySamuel N. Setyono

Corporate AffairsChristoforus

Corporate MISDadang Sudrajat

Corporate Control &Finance

Bama S. Hadi

Corporate HRD &Administration

Tjio Ferry Susanto

Corporate HSE CoordinationE. David Satria Soetedja

Purchase & Logistic CenterE. David Satria Soetedja

Engineering CenterAndreas Andre

Sales & Marketing CenterM. Amien

Production Planning &Order Control Office

M. Amien

Quality Assurance OfficeSander Liberti Sembiring

Jakarta FactoryRichard Andre S.

Sidoarjo FactoryLilik Roesianto


COMPANY PROFILE

Risk Management &Insurance CommitteeRisk Management &

Insurance Committee


COMPANY PROFILE

VISION AND MISSION

BOARD OF COMMISIONERS ANDBOARD OF DIRECTORS

To build the world abetter place forliving

To become a respectablemanufacturer and globalsupplier of glass andits related products.

The Company's Values of Conduct

1. Pioneering Spirit2. Honesty and Sincerity3. Cooperation Spirit4. Creative Thinking5. Responsible

MISSION

Composition of the Board of Commissioners and the Board ofDirectors based on Notarial deed No.44 dated June 5, 2015by Dr.Irawan Soerodjo SH, Msi is as follows:

Board of Commissioners:

President Commissioner : TAN PEI LINGVice President Commissioner : MASAHIRO TAKEDACommissioner : TJAHJANA SETIADHICommissioner : TAKEO TAKEIIndependent Commissioner : BENYAMIN SUBRATAIndependent Commissioner : HIDEYA TANAKA

Director

President Director : MAMPEI CHIYODAVice President Director : E. DAVID SATRIA SOETEDJADirector : NAOMASA TANIGUCHIDirector : MITSUHIRO YOSHIKADODirector : SADAYOSHI SHINOTSUKADirector : PRASETYO AJIDirector : TJIO FERRY SUSANTODirector : MICHITAKA GOTODirector : MOHAMAD AMIENDirector : TATSUO SUGIYAMAIndependent Director : RUSLI PRANADI

BOARD OF COMMISSIONERS ANDBOARD OF DIRECTORS APPOINTMENT IN 2015

Masahiro Takeda, Vice President CommissionerStarted his career at Asahi Glass Co., Ltd., Japan (AGC) in 1982and was appointed as Vice President Commissioner based onthe Company's Annual GMS (AGMS) dated July 5, 2015 replacingKimikazu Ichikawa.

Tjahjana Setiadhi, CommissionerStarted his career at the Company in 1976 and was appointedas Commissioner based on the Company's AGMS dated June5, 2015 replacing Andi Purnomo.

E. David Satria Soetedja, Vice President directorStarted his career at the Company in1982 and was appointedas Vice President Commissioner based on the Company's AGMSdated July 5, 2015 replacing Tjahjana Setiadi.

Sadayoshi Shinotsuka, DirectorStarted his career at the Asahi Glass Co., Ltd. Japan (AGC) in1986 and was appointed as Director based on the Company'sAGMS dated July 5, 2015 replacing Yoshiki Inoue.

Michitaka Goto, DirectorStarted his career at the Asahi Glass Co.,Ltd.,Jepang (AGC) in1990 and was appointed as Director based on the Company'sAGMS dated July 5, 2015 replacing Yasushi Kawamoto.

Mohamad Amien, DirectorStarted his career at the Company in1990 and was appointedas Director based on the Company's AGMS dated July 5, 2015replacing E. David Satria Soetedja.

VISION


Tan Pei Ling, President CommissionerIndonesian citizen, born in Jakarta in 1957. Graduated from the University of Portland, Oregon,USA and earned Bachelor of Business Administration in 1979. Started his career at PT Rodamasin 1979. Served as the Company's Commissioner from 1989 to 2008.

His first appointment as President Commissioner was legally based on resolution of the AGMSheld on June 6, 2008 replacing Tan Siong Kie. He is affiliated with the Company's shareholderby serving as Commissioner of PT Rodamas, one of the Company's majority shareholders.

Masahiro Takeda, Vice President CommissionerJapanese citizen, born in Japan in 1958. Graduated from the Faculty of Law of Osaka University,Japan. He has been working with Asahi Glass Co.Ltd, Japan (AGC) since 1982 up to the present.

His first appointment as President Commissioner was legally based on the Company's AGMSdated June 5, 2015 replacing Kimikazu Ichikawa. He is affliated with the Company's shareholderas employee of Asahi Glass Co Ltd, Japan, one of the Company's majority shareholders.

Tjahjana Setiadhi, CommissionerIndonesian citizen, born in Cirebon in 1952. Graduated from the Faculty of Physical Engineering,Institut Teknologi Bandung (ITB). Joined the Company in 1976, served as Director of the Companyfrom 1997 to 2010.and as Vice President Director up to 2015.

His first appointment as the Company's Commissioner was legally based on the AGMS datedJune 5, 2015 replacing Andi Purnomo. He is not affiliated with members of the Company's Boardof Directors, Board of Commissioners and shareholders.

Takeo Takei, CommissionerJapanese citizen, born in Tokyo in 1960. Graduated from Hitotsubashi University, majoring inEconomics, in 1984 and earned Master of Business Administration from University MichiganAnn Arbor in 2001. He has joined AGC since 1984 up to the present.

His first appointment as President Commissioner was legally based on the Company's AGMSdated June 22, 2012 replacing Masahiro Takeda. He is affliated with the Company's shareholderas the employee of Asahi Glass Co. Ltd, Japan, one of the Company's majority shareholders.

Benyamin Subrata, Independent CommissionerIndonesian citizen, born in Jakarta in 1958. Graduated from the University of Sussex, majoringin Mechanical Engineering in 1980. He joined GUnungSweu Group in 1983, handled Constructionbusiness, property, finance, ritel, manufacture, minings and elecricity. Currently, he also servesin several other companies including as President Commissioner of PT Puri Usaha Kencana andPT Puru Energi kencana and also as Commissioner of PT Intidaya Prima Kencana.

His first appointment as the Company's Independent Commissioner was legally based on theCompany's EGMS dated November 9, 2001. He is not affiliated with members of the Company'sBoard of Directors, Board of Commissioners and shareholders.

COMPANY PROFILE

BOARD OF COMMISSIONERS' PROFILE


COMPANY PROFILE

Hideya Tanaka, Independent CommissionerJapanese citizen, born in Chiba, Japan in 1942. Graduated from Nagoya Institute of Technology,Faculty of Mechanical Engineering in 1965. Currently, he also serves as President Director of PTPanel Bakti Sinarindo.

His first appointment as Independent Commissioner was legally based on the Company's AGMSdated November 9, 2001. He is not affiliated with members of the Company's Board of Directors,Board of Commissioners and shareholders.

Trainings attended by Board of Commissioners Members

On October 2, 2015, several members of the Company's Board of Commissioners attended Competition Law Training Seminarorganized by AGC Japan in Jakarta.

BOARD OF DIRECTORS' PROFILE

Mampei Chiyoda, President DirectorJapanese citizen, born in Kyoto, Japan, in 1964. Graduated from Faculty of Economics, TohkuUniversity, Japan, in 1986. He has been working with Asahi Glass Co., Ltd., Japan since 1986 upto the present.

His first appointment as President Director was legally based on the Company's AGMS datedMay 31, 2013 replacing Masato Oe. He is not affiliated with members of the Company's Boardof Directors, Board of Commissioners and shareholders.

As President Director, he is responsible for leading and coordinating activities and duties of theBoard of Directors members in general.

E. David Satria Soetedja, Vice President DirectorIndonesian citizen, born in Jakarta in 1959. Graduated from Trisakti University, majoring inMechanical Engineering in 1985. He has been working with the Company since 1985 up to thepresent.

His first appointment as Vice President Director was legally based on the Company's AGMSdated June 5, 2015 replacing Tjahjana Setiadi. He is not affiliated with members of the Company'sBoard of Directors, Board of Commissioners and shareholders.

As Vice President Director, he is responsible for helping organize activities and duties ofthe Company's Board of Directors members in general. He is also responsible for overseeingPurchase & Logistic Center and Corporate Health Safety & Environment activities.

Naomasa Taniguchi, DirectorJapanese citizen, born in Shiga, Japan 1963. Graduated from School of Engineering, KyotoUniversity, in 1988. He has been working with Asahi Glass Co., Ltd., Japan since 1988 up to thepresent.

His first appointment as Vice President Director was legally based on the Company's AGMSdated June 20, 2014 replacing Takashi Hirorutsu. He is affliated with the Company's shareholderas the employee of Asahi Glass Co. Ltd, Japan, one of the majority shareholders.

As Director, he is responsible for managing and overseeing the activities of Automotive GlassBusiness Unit that is located in Cikampek.


COMPANY PROFILE

Mitsuhiro Yoshikado, DirectorJapanese citizen, born in Kochi, Japan 1961. Graduated from Kochi National College of Technologyin 1982. He has been working the Asahi Glass Co. Ltd., Japan since 1982 up to the present.

His first appointment as Director was legally based on the Company's AGMS dated May 31, 2013replacing Mampei Chiyoda. He is affliated with the Company's shareholder as the employee ofAsahi Glass Co., Ltd, Japan, one of the Company's majority shareholders.

As Director, he is responsible for managing Flat Glass Business Unit in Jakarta.

Sadayoshi Shinotsuka, DirectorJapanese citizen, born in Chiba, Japan 1965. Graduated from Kisarazhu National College ofTechnology in 1986. He has been working with Asahi Glass Co Ltd., Japan since 1986 up to thepresent.

His first appointment as Director was legally based on the Company's AGMS dated June 5, 2015replacing Yoshiki Inoue. He is affliated with the Company's Shareholder as the employee of AsahiGlass Co. Ltd, Japan, one of the Company's majority shareholders.

As Director, he is responsible for overseeing and carrying out the activities of Flat Glass Factoryconstruction in Cikampek.

Prasetyo Aji, DirectorIndonesian citizen, born in Rembang, Central Java in 1958. Graduated from Institut TeknologiSepuluh Nopember (ITS) Surabaya, majoring in Chemical Engineering in 1985. He has beenworking with the Company since 1986 up to the present.

His first appointment as Director was based on the Company's EGMS dated June 3, 2005 replacingSoleh Dagusthani. He is not affiliated with members of the Company's Board of Directors, Boardof Commissioners and shareholders.

As Director, he is responsible for managing and overseeing the activities of Automotive GlassBusiness Unit which is located in Cikampek and helping in the Flat Glass Factory constructionproject in Cikampek.

Tjio Ferry Susanto, DirectorIndonesian citizen, born in Jombang, in 1959. Graduated from Petra Christian University.. Hehas been working with the Company since 1986 up to the present.

His first appointment as Director was legally based on the Company's AGMS dated June 24,2011. He is not affiliated with members of the Company's Board of Directors, Board ofCommissioners and shareholders.

As Director, he is responsible for managing and overseeing the activities of Flat Glass BusinessUnit located in Sidoarjo and Corporate HRD & Administration and Corporate MIS.

Michitaka Goto, DirectorJapanese citizen, born in Oita, Japan 1966. Graduated from Kyushu University in 1990. He hasbeen working with Asahi Glass Co., Ltd., Japan since 1990 up to the present.

His first appointment as Director was legally based on the Company's AGMS dated June 5, 2015.He is affliated with the Company's Shareholder as the employee of Asahi Glass Co. Ltd, Japan,one of the Company's majority shareholders.

As Director, he is responsible for managing and overseeing the Company's financial activities.


COMPANY PROFILE

No Name Position Training Materials Venue & Time Organizer

Mampei Chiyoda

Naomasa Taniguchi

Naomasa Taniguchi

Rusli Pranadi

Several BODmembers

Several BODmembers

1

2

3

4

5.

6.

President Director

Director

Director

IndependentDirector

Director

Director

Global Leadership Session,To Level - Up Management Skill

Protecting Your Brand withTrademark

Quality Management System

Corporate Governance

ISO 9001-2015

Competition Law TrainingSeminar

Japan, 1-2 December 2015

Cikampek, 7 April 2015

Jakarta, 12 November 2015

Jakarta, 18-19 August 2015

Jakarta, 12 November 2015

Jakarta, 12 October 2015

Asahi Glass Co.Ltd., Japan



Otoritas Jasa Keuangan

BSI Group


Mohamad Amien, DirectorIndonesian citizen, born in Pagar Alam, Palembang in 1966. Graduated from Trisakti University,majoring in Electrical engineering in 1990. He has been working with the Company since 1990up to the present.

His first appointment as Director was based on the Company's AGMS dated June 5, 2015 replacingDavid Satria Soetedja.

As Director, he is responsible for managing flat glass sales and marketing activities. He is alsoresponsible for Flat Glass and Automotive Glass quality assurance.

Tatsuo Sugiyama, DirectorJapanese citizen, born in Japan in 1962. Graduated from Nagoya University in 1986 and earnedhis Master of Chemical Engineering. He has been working with Asahi Glass Co., Ltd., Japan since1990 up to the present.

His first appointment as Director was legally based on the Company's AGMS dated June 20, 2014replacing Hiroaki Aimu. He is affliated with the Company's shareholder as the employee of AsahiGlass Co., Ltd., Japan, one of the Company's majority shareholders.

As Director, he for responsible in acting as a liaison of Asahi Glass Co Ltd., Japan, the Company'smajority shareholder, with the Company.

Rusli Pranadi, Independent DirectorIndonesian citizen, born in Jakarta in 1958. Graduated from STIE (School of Economics), majoringin Accountancy in 1993 and passed the State Examination for Accountant Profession in 1995and earned State Register as an Accountant numbered D-14.772. He has been joining with theCompany since 1981 up to the present.

His first appointment as Director was based on the Company's AGMS dated June 24, 2011 andwas appointed a Independent Director based on the Company's AGMS dated June 20, 2014.He is not affiliated with members of the Company's Board of Directors, Board of Commissionersand shareholders.

As Independent Director, he is responsible for managing and overseeing Corporate Affairsactivities.

Training attended by the Board of Directors

Throughout 2015, several members of the Board of Directors attended various trainings, workshops, seminars as follows:


COMPANY PROFILE

CHANGES TO THE BOARD OF COMMISSIONERS AND BOARD OF DIRECTORSCOMPOSITION AFTER THE FINANCIAL

Up to the end of the financial year and the time limit for the 2015 Annual Report submission, there was no change to theCompany's Board of Commissioners and/or Board of Directors.

HUMAN RESOURCES AND HR DEVELOPMENT

In line with the Company's vision "To become a respectable manufacturer and global supplier of glass and its related products",the Company should have human resources (HR) that are competent, qualified and fit with its business needs.

The Company believes that human resources are the main asset in supporting its business success, as reflected in the manualbusiness policy: "Employees are the Source of the Company's Strength".

As the Company's assets, employees must be able to uphold the values that have been fostered by the founders of the Company,namely: The Pioneering Spirit, Honesty and Sincerity, The Spirit of Cooperation, Creative Thinking and Be Responsible. TheCompany believes that implementation of the noble values will generate reliable human resources and produce high qualityproducts and services in realizing customer satisfaction.

Competency Development

In realizing those expectations, the Company through Training and Monozukuri Center (TMC) under the Corporate HR andAdministration has arranged and implemented an integrated and sustainable human resource development program through anumber of activities that have been arranged in the syllabus materials made by TMC, which consisting of continuous coaching,training and development programs related to ability, knowledge and leadership. Such activities are expected to improve humanresource capabilities and prepare the Company's future leaders.

In 2015, the Company conducted several human resource development programs, among others:

1. Performing Group Improvement Activities (GIA) as a tool to achieve Key Performance Indicator (KPI) for the employees. Thisevent was attended by all employees. GIA is divided into three (3) activities, namely:(i) Kaizen Theme Activity(ii) Innovation Theme Activity(iii) Asahimas Improvement System

Several groups were selected to represent the Company to participate in the Kaizen Convention activities in several automotivecompanies in Indonesia. In addition, the Company also sent representatives to participate in the Kaizen competition in Japan,which was attended by all representatives of the AGC Kaizen Group of several countries.

2. Conducting training to increase technical skills of employees guided by experienced staff both local and expatriate. To supportthe training, the Company has in place Skill Simulator facilities related to the production and the supporting equipment, tofacilitate the employees in the learning process. In 2015, the training was focused to support the construction of the newflat glass in Cikampek.


COMPANY PROFILE

3. Continuous trainings starting from recruitment up to retirement preparation with a view to enhance knowledge, skills andmotivation of employees. The Basic Discipline Training was provided for new employees to strengthen disciplinary culturein the Company.

4. Attended training, workshops and seminars at home and abroad on the basis of management, communication, finance,quality, human resources, supply chain management, and others.

5. To increase awareness of Occupational Health and Safety (K3) for all employees, the Company provided trainings throughSafety Hazard Simulator, Safety Patrol Simulator for line managers. The Company periodically sent its line managers to Japanto participate in the Safety Training of Key Persons organized by AGC Japan. This training was very valuable for the employeesbecause they could enjoy benefits not only at work but also in everyday life. The Company regularly provided training to dealwith emergencies such as fire, earthquake, tsunami, and others.

6. The Company continued to provide leadership training at every position level in the Company. This activity aims to preparea cadre of the Company's future leaders through activities such as Team Building, Outbound and Leadership training.

7. The Company also paid attention to the employees entering retirement by giving independent business training and retirementpreparation. The training aimed to give the Company's retiring employees adequate mental and skill preparation for theirretirement.

All activities were carried out at each factory of the Company in Jakarta, Sidoarjo and Cikampek. The Company believes that aharmonious relationship between the Company and employees is one of the main factors to support its business progress.

As of December 31, 2015, the number of the Company's permanent employees was 2,789 persons.

SHAREHOLDERS NAME AND SHAREHOLDING PERCENTAGE

Shareholders with 5% or above share ownership as of 31 December 2015.

Asahi Glass Co.,Ltd., Japan

PT Rodamas, Indonesia

No. Name Total Share

190,359,000

177,758,700

43.86%

40.96%

1

2

Percentage

Shareholdings by Members of the Board of Directors and Board of Commissioners As of December 31, 2015

As of December 31, 2015, there was no member of the Board of Commissioners who owned the Company's shares, while amember of the Board of Directors namely Mitsuhiro Yoshikado, the Company's Director, owned 20,000 shares or 0.005% of thetotal issued shares.

Public Shareholders , Each with Less Than 5% Share Ownership

As of December 31, 2015, public shareholders, each with less than 5% share ownership, amounted to 688 shareholders or 15.18%consisting of legal entities and individuals both at home and from abroad.

INFORMATION ON MAJORITY SHAREHOLDER AND CONTROLLING SHAREHOLDER

1. Asahi Glass Co., Ltd. ("AGC")AGC, the owner of 43.86% shares in the Company, is domiciled in 1-5-1 Marunouchi, Chiyoda-ku, Tokyo 100-8405 Japan. AGCis a public company in Japan, which was listed on the Tokyo Stock Exchange and Osaka Stock Exchange. Established in 1907,the Company has evolved into the most prominent multinational glass producer in the world market for building glass,automotive glass, display glass and other related products. At present, aside from glass industry, AGC Group also engagesin fluorine chemical, electronics and energy development industries. AGC Group has global networks and affiliations spreadingacross more than 30 countries.

2. PT RodamasPT Rodamas, the owner of 40.96% shares in. the Company, is domiciled on Jalan Let. Jend. S. Parman Kav 32-34, Slipi, Jakarta11480, Indonesia. Established in 1955, PT Rodamas engages in various lines of business in Indonesia with a focus on themanufacturing industry and the distribution of industrial and consumer products. Rodamas Group controls a vast and importantmarketing network spreading all over the country and covering various fields such as consumer products, building materials,chemical products, packaging and glass cutter.


COMPANY PROFILE

COMPANY STRUCTURE UP TO ULTIMATE SHAREHOLDER AS OF DECEMBER 31, 2015

2.39%

3.95%

4.05%

4.68%

The Master TrustBank of Japan, Ltd.

(Trust Account)

Meiji Yasuda LifeInsurance Company

Japan TrusteeServices Bank, Ltd.

(Trust Account)

Tokio Marine &Nichido Fire

Insurance Co., Ltd.

2.04%

Japan TrusteeServices Bank Ltd.(Trust Account 9)

1.96%

The Asahi GlassFoundation

1.91%

Mitsubishi EstateCo., Ltd.

72.74%

Lainnya(Kurang dari 1%)

5.36%

ChristopherTanuwidjaja

91.88%

Tan Pei Ling

2.76%

IshakSumarno

PT Auto Glass Indonesia

1.74%

The Bank ofTokyo-Mitsubishi

UFJ, Ltd.

2.01%

NipponLife Insurance

Company

14.86%

Public

40.96%


43.86%


0.32%

Cooperatives

99.95%

PT Asahimas Flat Glass Tbk

2.53%

Barclays Securities Japan Limited


COMPANY PROFILE

SUBSIDIARYPT Auto Glass Indonesia

Head Office: Jl. Danau Sunter Utara Blok J-12, No. 78 dan 79, Sunter Agung, Jakarta UtaraPhone: (62-21) 65 303 300, Fax: (62-21) 651 0018

E-mail: [email protected], website:www.autoglass.co.id

Branch Office: Jl. Ciputat Raya No.9, Kebayoran Lama, Jakarta SelatanPhone: (62-21) 750 0911, Fax: (62-21) 765 2134

Line of BusinessReplacement and repair services for safety glass of

motor vehicles

Employee14 persons (as of December 31, 2015)


Samuel Nugroho Setyono

Total

ShareholdersNominal Valueper share (Rp)

Number ofShares

Amount (Rp) %

Issued and Fully Paid Up Capital

1,999

1

2,000

1,000,000

1,000,000

1,999,000,000

1,000,000

2,000,000,000

99.95%

0.05%

100



Cooperatives

Public

Total

Shareholders

Initial Public Offeringin 1995

Total Shares Nominal ValueRp

December 31, 2015

Total Shares Nominal ValueRp

174,000,000

174,000,000

-

86,000,000

434,000,000

87,000,000,000

87,000,000,000

-

43,000,000,000

217,000,000,000

190,359,000

177,758,700

1,374,000

64,508,300

434,000,000

95,179,500,000

88,879,350,000

687,000,000

32,254,150,000

217,000,000,000

CHRONOLOGY OF SHARE LISTING AND CHANGES OF NUMBER OF SHARES

Pursuant to the statement of the Chairman of the Capital Market Supervisory Agency ("Bapepam") No. S-1323 / PM / 1995 datedOctober 18, 1995, the Company offered 86 million shares or 19.82% listed on the Jakarta Stock Exchange and Surabaya Stock.Exchange. However, on November 1, 1999 the Company delisted its shares out of the Surabaya Stock Exchange. At present, theCompany's shares are only listed on the Indonesia Stock Exchange.

CAPITAL MARKET SUPPORTING INSTITUTIONS AND PROFESSIONS

Public Accountants FirmSiddharta Widjaja & Rekan33rd Floor Wisma GKBIJl. Jend. Sudirman Kav. 28Jakarta 10210, IndonesiaPhone: (62-21) 574 1777Fax : (62-21) 574 2777

Share RegistrarPT Datindo EntrycomPuri DatindoJl. Jend. Sudirman Kav. 34-35Jakarta 10220, IndonesiaPhone: (62-21) 570 9009Fax : (62-21) 570 9026

NotaryDr. Irawan Soerodjo, SH, MSiJl. K.H. Zainul Arifin No. 2Komplek Ketapang IndahBlok B-2 No. 4-5Jakarta 11140Phone: (62-21) 6301511Fax : (62-21) 6337851


COMPANY PROFILE

Independent Accountants

Pursuant to the resolution of the AGMS held on June 5, 2015 and the Audit Committee's recommendation, the Company hasagreed to appoint Public Accountants Firm Siddharta Widjaja and Partners, a member firm of KPMG International, to audit theCompany's 2015 Financial Statements. The total costs incurred for the Audit of the Company's 2015 Financial Statements wasRp1.9 billion.

The Public Accountants Firm (KAP) has completed its task independently according to professional standards of public accountants,employment agreements and the predefined scope of audit. The KAP did not provide other consulting services to the Company.The Accountant who signed the Independent Auditors' Report for the 2015 Financial Year is Dra. Tohana Widjaja, MBA, CPA.

AWARDS AND CERTIFICATIONS

Flat Glass Factory - Jakarta

1. In October 2015, received ""PROPER Blue" Award from the Indonesian Ministry of Environment and Forestry.

2. In November 2015, received Certificate of Appreciation from Flat Glass Allliance of the Phlippines inc.

Flat Glass Factory - Sidoarjo

1. In October 2015, received "PROPER Blue" Award from the Indonesian Ministry of Environment and Forestry.

2. In December 2015 received “Award Day 2015” from Bank Indonesia as the Best Information Partner.

Automotive Glass Factory - Jakarta

1. In October 2015, received "PROPER Blue" Award from the Indonesian Ministry of Environment and Forestry.

2. In December 2015, received the following awards from Kaizen Award Toyota Manufacturer Club:• Gold Medal for Criteria Suggestion System (SS)• Gold Medal for Criteria Quality Control Circle (QCC)• The Most Improved Management Award 2015


COMPANY PROFILE

Gold Medal for CriteriaQuality Control Circle (QCC)

Gold Medal for CriteriaSuggestion System (SS)

The Most Improved Management Award 2015

“Award Day 2015”from Bank Indonesia as theBest Information Partner.


MANAGEMENT'S DISCUSSION AND ANALYSIS

OPERATIONAL REVIEW BY BUSINESS SEGMENT

Flat Glass

In 2015, total flat glass sales volume increased by 2% compared to the previous year, to become 516 thousand tons. The increasewas coming from 14% increase in export sales volume, while in the domestic market there was 7% decrease in sales volume.

Net Sales were recorded at Rp 2.7 trilion or increased by Rp 130 billion or by 5% compared to 2014. The growth was attributable to19% increase in the export sales while for domestic market the net sales decreased by 6% compared to 2014.

The global economic condition was still not recovered in 2015 and hit Indonesia's economy. This impacted on the decline in purchasingpower, leading to 15-20% decrease in growth of domestic property, in particular commercial building that is a major segment of flatglass. A considerable number of property projects were slowing down or temporarily halted. The impact strongly affected the Company,especially in the second and third quarters of 2015 where the Company's demand for flat glass in the country began to decline.

To cover the declining demand of flat glass in the domestic market, the Company put all efforts to improve its export sales,among others by continuously making price adjustments and market penetration, especially in Asian countries. The efforts provedto positively contribute to the increase in the demand of the Company's flat glass and automotive glass raw material compared tothe previous year.

In general, the Company's Flat Glass Business Unit recorded Rp 2.67 trillion net sales or grew by 5% or Rp 130 billion compared withthe Rp 2.54 trillion net sales in 2014. This reflects that the increase in export sales of flat glass can cover the decrease in domesticdemand.

The Company's flat glass factory is located in Ancol, Jakarta and Sidoarjo, East Java with production capacity totaling 570,000 tonsper year. The production capacity will be adjusted with the economic condition and consumption growth, particularly in the domesticmarket.

Until the end of 2015, the realization of construction of flat glass factory in Cikampek, Karawang - West Java, with a total productioncapacity of 210,000 tons per year was approximately 66% completed. The factory construction is expected to be completed onschedule in the second semester of 2016.

The Company's Flat Glass Products are used in the glass application in buildings, interiors and as raw material for the manufacturingof further processed glass and automotive glass. Throughout 2015, there were a number of construction projects using the Company'sflat glass, to name a few: Kirana Commercial Avenue, Cengkareng Business City, Cawang's The Hive 2 , Terminal 3 Ultimate SoekarnoHatta Airport and others.

Automotive Glass

In 2015, automotive glass sales volume decreased by8,570 tons (17%) from the previous sales amountingto 51,824 tons in 2014. The decrease was due to lower salesvolume in the domestic and export markets, respectivelyby 8,077 tons and 493 tons or by 17 % and 11%. The decline wasmainly due to weaker car sales in domestic market. Throughout2015, car sales in the country amounted to 1,013,291units, 16% decrease compared to 2014 amounting to 1,208,020units. The weakening economic condition in Indonesiaresulted in the decline and tightening of the people'spurchasing power. The Company's sales value reached Rp 1 trillionor decreased by Rp 136 billion (12%) compared to 2014.This decline was attributable to the weakeaning domesticsales, declining by 15%. However, export market sales increased by 8% compared to 2014. The increase in export sales was in linewith the strengthening exchange rate of USD against Rupiah which contributed positively to the Company's export sales.

The decline in sales of automotive glass in 2015 was due to the weakening of people's purchasing power as a result of the slowdownin the national and global economies. The Company continuously strived to make operational improvements with a view to enhancecompetitive advantages of its products and maintain existing market share. The Company also continued to meet the availability ofAuto Replacement Glass (ARG) which was on high demand in the domestic and overseas markets.

In 2015, several car manufacturers released their new products, which certainly brought positive impact on the Company'sdemand for automotive glass. Several new car models were launched in 2015, to name a few: Honda HRV, Toyota New Innovaand many more. In 2015, the Company continued to introduce high-end technology of automotive glass, such as UV Cut glass,IR Cut, acoustic and water repellent. The Company provided demos and applications directly to the car customers to get theirfeedbacks which were expected to be implemented in the automotive glass products to be produced.

For 2016, the Company will continue product innovation conducted in the previous year such as Melting Snow Windshield for ARGexport and Acoustic Windshield and IR-Cut Windshield for ARG and OEM export markets.

The Company's automotive glass factory is located in Cikampek, West Java, and produces tempered glass and laminated glass.The current total capacity is 5,000,000 m2 per year or equivalent to the use of glass for 1.5 million car units. Up to now, the capacityis sufficient to meet the demand in domestic automotive glass. The Company will continue to adjust its capacity in line withthe growth of car sales in the coming years in order to support the growth of the national automotive industry. In 2015, the automotiveglass factory expanded its machine capacity for tempered glass and laminated glass. The expansion was expected to supportthe acceleration of production processes in automotive glass business unit.

FINANCIAL PERFORMANCE ANALYSIS

In 2015, the Company recorded net sales of Rp 3.67 trillion or Rp 6 billion decrease compared to 2014. The decrease wasdriven by the fall of the Company's domestic sales in 2015 by 10% or amounting to Rp 2.14 trillion compared with Rp 2.38trillion domestic sales in 2014. The decrease in domestic market was mainly attributable to the slowdown in the nationaleconomy resulting in a decrease in flat glass and automotive glass in the country by 6% and 15% respectively.

The Company's export sales increased to Rp 1.53 trillion or grew Rp 228 billion or 18% from Rp 1.30 trillion in 2014. The increase inexport sales was due to 19% increase in flat glass export sales. Stronger exchange rates of USD against Rupiah also contributedpositively to the selling price of the Company's export products.

In 2015, the Company recorded operating expenses at Rp 369 billion or grew Rp 20 billion compared to 2014 which amountedto Rp 349 billion. Meanwhile, the Company's cost of sales in 2015 was recorded at Rp 2.87 trillion or rose Rp108 billion (4%)compared with Rp 2.76 trillion in 2014. The increase in these expenses contributed to a decrease in the Company's gross profitmargin to 22% from 25% in 2014.

The 6% increase in the 2015 operating expenses was mainly caused by increasing of selling expense Rp18 billion or 5% increasecompared to 2014. The Company's total operating profit dropped by 24% from Rp563 billion in 2014 to Rp 429 billion in 2015. Theincrease in the operating expenses which was not compensated by the increase in net sales, making the Company's operating profitmargin decreased to 12% or down 3% compared to 2014.


MANAGEMENT ANALYSIS AND DISCUSSION



Description

CAPITAL STRUCTURE AND MANAGEMENT POLICY ON CAPITAL STRUCTURE

2015(Rp million) % Total Assets % Total Assets2014

(Rp million)

Current LiabilitiesNon-Current LiabilitiesTotal LiabilitiesEquityTotal Assets

479,376400,676880,052

3,390,2234,270,275

119

2179

100

398,238446,447844,685

3,101,4403,946,125

10112179

100

In 2015, the Company's liability ratio dan equity ratio was 21% and 79% respectively. Most of the Company's total liabilitiesin 2015 consisted of trade payables and employee benefits obligation. In 2015, the Company's total liabilities grew Rp 35billion compared to 2014. This increase was due to a increase in trade payables and accrued expenses and a decrease inemployee benefits obligation.

The Company has determined a capital structure policy by always maintaining Debt-to-Equity Ratio (DER) below 75%.The Company's DER as of December 31, 2015 was 26%. This shows that the Company's capital structure was reasonablystrong.

In overall, the Company's total profit in 2015 dropped by 26%. The Company recorded Rp 341 billion net income or decreased byRp 123 billion compared to 2014 which was recorded at Rp 464 billion.

As of December 31, 2015, total assets were recorded at Rp 4.27 trillion or up Rp 324 billion (8%) compared with Rp 3.95 trilliontotal assets posted in 2014. The rise was mainly attributable to the increase in non-current assets by Rp 357 billion (21%)while current assets dropped by Rp 33 billion (1%) compared to 2014.

The increase in non-current assets was derived from growth of fixed asset growth by Rp 292 billion (19%), other non-currentasset by Rp 35 billion and prepaid taxes by Rp 34 billion. While the decrease in current assets was mainly due to a Rp 176billion (16%) decrease of cash and cash equivalents and trade receivables by Rp 863 million. The drop in cash and cashequivalents was mainly due to the financing for flat glass factory construction investment in Cikampek, West Java.

The Company's total liabilities as of December 31, 2015 amounted to Rp 880 billion or increased by Rp 35 billion (4%)compared to December 31, 2014. The increase was primarily caused by an increase in current liabilities by Rp 81 billion (20%)and a decrease in non-current liabilities by Rp 46 billion. The hike of current liabilities by Rp 32 billion (13%), accruedexpenses by Rp37 billion (37%) and other current liabilities by Rp18 billion (69%). While the decrease in non-current liabilitiesby Rp46 billion (10%) was derived from the decrease in employee benefits obligation.

The Company's total equity as of December 31, 2015 amounted to Rp3.39 trillion or increased by Rp289 billion (9%) compared tothe December 31, 2014 position. The increase was due to the hike of retained earnings as an accumulation of the profit attributaleto owner of the parent entity in the previous year.

The Company's Cash and Cash Equivalents by end 2015 dropped by Rp 176 billion or by 16% compared to 2014. This decrease wasprimarily due to the increase in cash used for investment activity compared to cash used in operation activity.

SOLVENCYAs of December 31, 2015, the Company recorded total current assets of Rp 2.23 trillion, while the total current liabilitiesamounted to Rp 479 billion. This shows that the Company's ability to pay its current liabilities was very good, reflectedfrom the 4.7x current ratio. Cash and cash equivalents were recorded at Rp 932 billion, exceeding the Company'stotal liabilities amounting to Rp 880 billion. Since 2008 up to date, the Company has not had Bank loans, showing thatthe Company's cash was quite adequate to finance operating expenses and investing activities conducted by the Company.For Cikampek's flat glass factory construction, up to December 31, 2015, the Company still used its internal cash.

ACCOUNTS RECEIVABLE COLLECTIBILITY

At the end of 2015, the Company's ability to collect accounts receivable (collecting period) was relatively good. Themanagement has evaluated the collectability of each balance of trade receivables and decided that all trade receivablesare collectable and thereby there was no provision for impairment needed and there was no balance of trade receivables useas collateral.



MATERIAL COMMITMENT FOR CAPITAL GOODS INVESTMENT

In 2015, the Company had material commitments in the form of agreements with several vendors on construction works inrespect of its plan to build a flat glass factory with a total capacity of 210,000 tons per year with an investment value of USD154.9million in Cikampek, Karawang, West Java. The factory construction commenced in early 2015 and is estimated to complete inthe second semester of 2016.

The fund used for the investment up to the end of 2015 was still sourced from the Company's internal cash and if needed, theCompany has planned to use external funding such as bank loans, etc.

MATERIAL INFORMATION AND FACT AFTER THE REPORTING DATE OF PUBLIC ACCOUNTANT

There was no material information and fact occurring after the reporting period of the 2015 financial year.

BUSINESS PROSPECT

The Company expects the year 2016 to offer a better business prospect. Despite the slowdown in the country's economy, severalpolicies launched by the Government in 2015 are expected to be immediately enforced by relevant institutions. Bank Indonesiahas also lowered BI rate to 6.75% in the first quarter of 2016. The lower rate is expected to be immediately followed by lowerrates on Bank loans distributed to people, which will drive the people's economy. In addition, the Government's plan to accelerateinfrastructure development in all parts of Indonesia is expected to run according to the plan. The Company expects all of theseindicators can be positively correlated to the Company's performance in 2016.

The Company expects a better growth of the property and automobile sectors in 2016. It is also expected that the Governmentstimulus in several economic policy packages, such as the obviation of luxury tax (PPnBM) on the prices of below Rp20 billionlanded houses and below Rp10 billion apartments, will boost the property sales which is a major market of the Company's flatglass products.

As for the automotive market, the Company predicts Indonesia's automotive market in 2016 tends to be flat or no different fromthis year's accomplishment in line with the people's purchasing power that remains weak. It is expected that the Company canabsorb the GAIKINDO's target of 7% sales increase compared to 2015. The Company also expects to increase its export sales tocompensate the sluggish automotive sales in the domestic market.

Although the growth of the automotive industry in 2016 is not expected to return to normal, in the long term, it continues toshow a positive trend for growth. Some manufacturers have invested in the automotive industry by constructing plants in 2015.It shows the automotive market in the domestic market will remain bright and is expected to be positively correlated to theCompany's growth.

COMPARISON BETWEEN PROJECTIONS AT THE BEGINNING OF FINANCIAL YEAR ANDTHE ACHIEVED TARGETS

In 2015, the Company's net sales amounted to Rp3.67 trillion or almost the same as in 2014. The result was below the net salestarget at the beginning of the fiscal year projected in the range of 7% -10% compared to 2014. This unachieved target was dueto the economic slowdown and increased costs in 2015.

COMPANY'S 2016 TARGETS

The Company's business projection in 2016 is based on the assumption that the country's economic growth will stand at 5.5%.The Company expects that the growth will be followed by the increase in the growth of the construction and automotive sectors,the main market of the Company's products. GAIKINDO's target of 7% increase in the 2016 car sales is expected to contributeto the Company's sales in line with the country's GDP growth. As for profit forecast, it is estimated that the profit growth willbe below the percentage of sales increase due to the continued increase in raw material costs, energy costs particularly gas andelectricity as well as labor costs, which can not fully compensated by the sales increase.

MARKETING

The Company's products are quite well known by Indonesian people because the Company has marketed its products nationallysince 1973. The Company started to penetrate in export markets in 1984. Until now, the Company products have been used bypeople in the domestic and overseas market.



Flat glass marketing in the domestic market is done by PT Rodamas, which has established a strong distribution network since the1950s. Having distribution networking in major cities in Indonesia, the Company products can be distributed and used by public indomestic markets. Meanwhile, the marketing for exports is conducted by an agent in Singapore, namely AGC Asia PacificPte., Ltd., (AAP). By the agent's global market networking, the Company's products are marketed globally.

To support the marketing of its products, the Company continues its product innovation. At the end of 2015, the Company introducedSunergy Cool glass which was a further development of Sunergy Clear glass that had been previously marketed. Sunergy Cool glassis launched to the market in a new color in accordance with the latest trend and also has a better performance than Sunergy Clearglass. The Company also continues innovating more new products in particular for coated glass for brand development of Sunergyand Stopsol brands to be introduced in 2016.

For flat glass products in 2015, the Company performed a number of marketing activities, such as introducing new products throughseminars and architecture glass exhibitions in some major cities in Indonesia. The Company in cooperation with other AGC Groupmembers such as AGC Asia Pacific Pte., Ltd (Singapore), AGC Flat Glass Thailand, AGC Flat Glass Phillipines, Inc participated in the2015 Glasstech Asia Exhibition taking place on 19 - 21 November 2015 in JIExpo, Kemayoran, Jakarta. In this exhibition, the Company,collaborating with other AGC Group members, introduced exterior and interior glass products, particularly glass products with addedvalues and energy saving glass.

To support its products sales, particularly for the project segment, the Company regularly conducted seminars andgatherings with architects, consultants and building developers in major cities in Indonesia such as Jakarta, Bandung,Medan, Balikpapan and other cities. This activity was expected to raise awareness of the use of energy-saving glass tosupport green building program.

While automotive glass marketing for the OEM market in the Country was aimed to the Sole Agent (ATPM) as car manufacturers inIndonesia, such as Astra Daihatsu Motor, Toyota Motor Manufacturing Indonesia, Kramayudha Tiga Berlian, Honda Prospect Motor,Hino Motors Manufacturing Indonesia, Nissan Motor Indonesia, Suzuki Indomobil Motor, Isuzu Astra Motor Indonesia, General MotorsIndonesia and others.

While the marketing for Auto Replacement Glass (ARG) was conducted through the networks of spare parts Division of each ATPMholder as well as through dealers and sub-dealers networks spreading across Indonesia.

The Company also continued the marketing to ASEAN countries conducted in the previous year both for OEM and ARG markets andglass for industrial use such as Exavator, Tractor and others in the Japanese market. The Company continued to improve its Low CostGreen Car (LCGC) glass market of which the demand is expected to continue growing in the future both at domestic and overseasmarket. LCGC that is at competitive price, fuel-efficient and with complete features will be enough to make the demand continuouslygrowing in the future.

Given a massive market in the country, the competition in the automotive glass has got more stringent. Some manufacturers havebeen able to offer more competitive prices both for OEM and ARG markets. However, the Company is confident that itsproduct quality and innovation as well as the services provided will earn the trust of the Company's customers.



DIVIDEND POLICY

The resolution of Annual GMS held on May 31, 2013 determined that the dividend payment policy effective from the 2013 financialyear was 35% of Net Profit after Tax at the maximum. The amount of dividends to be distributed also depends on the Company'sprofits in the current financial year, by taking into account the Company's soundness and future plans and without prejudicing theright of the Company's General Meeting of Shareholders to determine otherwise in accordance with the provisions of its Articles ofAssociation.

DIVIDEND PAYMENT

In the Company's Annual GMS dated June 5, 2015, the shareholders approved the payment of cash dividends amounting toRp34,720,000,000 or 7.48% of the Company's total net profit for the 2014 financial year. Each shareholder received Rp 80 cashdividend per share. The cash dividend was paid to shareholders on July 3, 2015.

As for the 2014 financial year, based on the 20 June 2014 Annual GMS resolution, on July 24, 2014 the Company paid cash dividendto shareholders amounting to Rp 34,720,000,000 or 10.26% of the total net income for the 2013 financial year. Each shareholderobtained Rp 80 cash dividend per share.

REALIZATION OF THE USE OF PROCEEDS FROM IPO

The Company listed its shares on the Jakarta Stock Exchange (now BEI) and Surabaya Stock Exchange on October 18, 1995by offering 86,000,000 shares or 19.82%. The Rp210 billion net proceeds from the Company's IPO were already used tofinance the construction of A2 Furnace in Sidoarjo and Automotive Glass Factory in Cikampek that was already completedin 1997. Reports on the realization of the Use of Proceeds were already reported by the Company to OJK (formerly Bapepam).

MATERIAL INFORMATION ON INVESTMENT, EXPANSION, DIVESTMENT, ACQUISITION ORDEBT/CAPITAL RESTRUCTURING

There was no approval for new Investment, Expansion, Divestment, Acquisition or Debt/Capital Restructuriing given in the 2015financial year.

CHANGES IN LAWS AND REGULATIONS

Throughout 2015, there was no change in laws and regulations that significantly influenced the Company and its financialstatements.

CHANGES IN ACCOUNTING POLICY

Since January 1, 2015, the Company adopted the Statement of Financial Accounting Standard (SFAS) No. 24 (Revised 2013)on Employee Benefits, which provides that the remeasurement of net defined benefit liabilities (eg, actuarial profits and losses) is recognized immediately in other comprehensive income. Previously, the Company admitted it in the profit or loss using anapproach allowing the suspension of recognition on the actuarial profits and losses.

In addition, when the benefits of a program are changed or a program is curtailed, the impact of changes in benefits withregard to the past service costs or the curtailment profit or loss will be immediately recognized in the profit loss. Previously,past service costs that are not yet vested were amortized to profit loss with a straight-line method over the average remainingperiod of the expected term of service.

In accordance with the transition provision of the PSAK, the Company applied this change of accounting policy retrospectivelyand restated comparative information in the financial statements (see Note 29 to Financial Statements).


GOOD CORPORATE GOVERNANCE

The Company is fully committed to continuously improve and implement Good Corporate Governance (GCG) consisting of Transparency,Accountability, Responsibility, Independency and Fairness, which have been the guidelines for the Company to run its business. GCGprinciples implementation shall mean timely and accurate information disclosures, equal treatment for all stakeholders, clarity ofthe functions and responsibilities of the Company's organs, responsibility to the community, the Company's professional managementwithout pressure from certain parties and compliance to the legislation in force.

With the issuance of GCG roadmap at the beginning of 2014 and the Guidelines for Corporate Governance for public companies byOtoritas Jasa Keuangan (“OJK”) in 2015, the Company strives to continuously align its Governance Practices with the Roadmap andGuidelines. One of the improvements made in 2015 was by making the 2014 Annual Report in English edition available in the Company'swebsite. Other improvements related to GMS implementation mechanism included, the GMS invitation delivery was adjusted fromto 14 days to become 21 days prior to GMS holding; hand-out of GMS rules, which previously was only distributed to participants, itis now started to be read to the participants. In addition, in 2015 the Company also completed the Charters of the Board ofCommissioners, Board of Directors and the Nomination and Remuneration Committee. The Company's Wesbite as the main gatewayfor Stakeholders in obtaining information has also been adjusted with OJK regulation.

Refer to new OJK Regulation No. 33 regarding the Board of Commissioners Meeting, the Board of Directors Meeting as well as theBoard of Commissioners and Board of Directors Joint Meeting as well as OJK Regulation No. 34 regarding membership of the Nominationand Remuneration Committee, the Company has restructured the numbers of its Committees. The Board of Commissioners dissolvedits 3 (three) committees and currently only has 2 (two) Committees namely the Audit Committee and Nomination and RemunerationCommittee. While the Board of Directors has 2 (two) Committees namely the Disciplinary & Compliance Committee and RiskManagement and Insurance Committee. The Executive Committee, which previously reported to the Board of Commissioners, wasalready dissolved. These changes were made because some Committees activities were already represented in the Board ofCommissioners and Board of Directors Joint Meeting.

The Company also continued to perform GCG Self Assessment by referring to the ASEAN Corporate Governance Scorecardand continued to improve the weaknesses found out from the assessment. The Company expects that the efforts made inlaying the GCG value foundation will correlate in increasing its performance in the long term and increasing the Company'svalues for the Stakeholders.

BOARD OF COMMISSIONERS

Pursuant to the Company's Articles of Association, the Board of Commissioners (“BOC”) oversees the Board of Directors'policies in managing the Company and provides advices to the Board of Directors as well as performing other things specifiedin the Articles of Association or determined from time to time by the GMS. Regulation on Public Company's Board of Directorsis stipulated further in OJK Regulation No. 33/POJK.04/2014 on the Board of Directors and Board of Commissioners of PublicListed Companies or Public Companies.

Charter and Code Of Conduct

To enhance GCG implementation performance and transparency, in 2015 the Board of Commissioners completedthe Board of Commissioners Charter. The Charter was already approved and signed by the Board of Commissioners.Contents of this Charter are already in comformity with OJK stipulations, among others: membership, duties, authorities andobligations, and also the Board's mistakes or negligence in performing its duties, values, working time, board meetings,reporting and accountability.

While the Board of Commissioners's Code of Conduct is already provided in the Code of Conduct established by the Companysince 2002 and continuously enhanced in line with the development of the Company and the AGC Group. The Code of Conductapplies to the Company's Board of Commissioners, Board of Directors and Employees. Charter for the Board of Commissionersand Code of Conduct are already fully disclosed in the Company's website.

Implementation of Board of Commissioners Duties

In 2015, the Board of Commissioners performed its duties by conducting various activities, among others:

1. On April 29, 2015, set the outline on matters that should be regulated in the Board of Commissioners Charter and the Nominationand Remuneration Committee Charter.

2. On July 31, 2015, approved working capital loan facilities from banks amounting to USD10 million.

3. On August 24, 2015, dissolved several committees under the Board of Commissioners, namely the Compliance Committee; RiskManagement and Insurance Committee; and Executive Committee.



President Commissioner TAN PEI LINGVice President Commissioner MASAHIRO TAKEDACommissioner TJAHJANA SETIADHICommissioner TAKEO TAKEIIndependent Commissioner BENYAMIN SUBRATAIndependent Commissioner HIDEYA TANAKA

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12345678

No.2015

Name Position

Board of Commissioners Meetings

Tan Pei LingKimikazu Ichikawa**Masahiro Takeda*Andi Purnomo**Tjahjana Setiadhi*Takeo TakeiBenyamin SubrataHideya Tanaka

President CommissionerVice President CommissionerVice President CommissionerCommissionerCommissionerCommissionerIndependent CommissionerIndependent Commissioner

29 Apr 25 Jun 25 Aug 25 Oct 25 Dec

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* Has been serving since June 5, 2015** No longer in service after June 5, 2015

• Attending - Not Serving

4. On August 24, 2015, pursuant to the authority delegated by the GMS, the Board of Commissioners appointed the Public AccountantsFirm "Siddharta Widjaja & Partners" to audit the Company's books for the financial year 2015 and approved the audit fees andother terms and conditions.

5. On December 18, 2015, approved to receive an investment loan facility from banks amounting to USD 60 million.

6. On December 18, 2015, approved the Company's annual working plan and budget in 2016 including 2016 Corporate SocialResponsibility activities budget which was prepared and submitted by the Board of Directors.

Composition of the Board of Commissioners

The number of the Company's Board of Commissioners members as of December 31, 2015 was 6 (six) person including 1(one) President Commissioner and 2 (two) Independent Commissioners. This is in accordance with OJK RegulationNo. 33/POJK.04/2014 on the Board of Directors and Board of Commissioners of Public Listed Companies or PublicCompanies. The Board of Commissioners composition based on the resolution of the Company's Annual GMS held onJune 5, 2015, with term of office until the closing of the 2016 AGMS is as follows:

Procedure and Determination of the Board of Commissioners' Remuneration

On June 5, 2015, the Company's Annual GMS granted authority to the Board of Commissioners to determine the salary and/or benefitsfor members of the Board of Commissioners not exceeding USD 750,000 a year. Pursuant to the recommendations from the Company'sNomination and Remuneration Committee, the Board of Commissioners determined the salary and/or allowances received by allmembers of the Board of Commissioners for 2015 amounted to Rp 3,510 million.

Board of Commissioners Meetings

In 2015, the Board of Commissioners held 5 (five) meetings and 2 (two) joint meetings with the Board of Directors. Theattendance of members of the Board of Commissioners in the BOC - BOD Joint Meeting is as follows:

BOC- BOD Joint Meeting

There were 2 BOC-BOD Joint Meetings held in 2015, i.e: on April 29, 2015 and December 18, 2015. The two meetings wereattended by almost all members of the Board of Commissioners and Board of Directors.

BOARD OF DIRECTORS

The Board of Directors (“BOD”) is the Company's organ fully responsible for ensuring that the Company's management is torun according to the interests of shareholders and other stakeholders. The Board of Directors reports its accountability forthe performance of its duties to the GMS. In performing its duties, the Board of Directors is given clear authority andresponsibility in accordance with the Company's Articles of Association as referred to prevailing rules and regulations.



Charter and Code of Conduct

Similar to the Board of Commissioners, in 2015 the Board of Directors has also set BOD Charter and Code of Conductprepared based on OJK Regulation No. 33/POJK.04/2014 on the Board of Directors and Board of Commissioners of PublicListed Companies or Public Companies. BOD Charter stipulates several matters, among others: membership, duties, authoritiesand obligations, mistakes or neglegence in performing duties, values, working time, meetings, reporting and accountability.This Charter was already approved and signed by all members of the Board of Directors and will be reviewed periodically.

The Company's Code of Conduct applies to the Company's Board of Commissioners, Board of Directors and Employees.Periodically, the Board of Directors members sign a statement representing that they understand and adhere to the matters setforth in the Company's Code of Conduct.

Scope of Work and Responsibilities of the Board of Directors

Board of Directors is the Company's Organ in charge and responsible to execute management function in accordancewith the Company's goals and objectives. The segretation of duties and responsibilities of members of Board of Directors isbased on the Board of Directors' decision. Duties and Responsibilities of each member of the Board of Directors are asfollows:

1. President Director is responsible for directing and coordinating the activities and tasks of the members of the Board ofDirectors in general.

2. Vice President Director is responsible for:a. assisting the President Director and performing general tasks of the Board of Directors member;b. serving as the Director responsible for managing and supervising the activities of Purchase & Logistic Center and Corporate

HSE.

3. Director of Automotive Glass Business Unit is responsible for managing and supervising the operations of Automotive GlassBusiness Unit.

4. Director of Flat Glass Business Unit is responsible for managing and supervising the operations of Flat Glass Business Unit.

5. Director of Production is responsible for the development of flat glass factory project in Cikampek.

6. Director of Administration is responsible for managing and coordinating all activities under the Human Resources and Administrationand supervising the operations of Flat Glass Business Unit in Sidoarjo and Corporate MIS.

7. Director of Automotive Glass Production is responsible for assisting the management and supervising the operation of AutomotiveGlass Business Unit and the development of Flat Glass project in Cikampek.

8. Director of Finance is responsible for managing the Company's finance.

9. Director of Flat Glass Sales and Marketing is responsible for assisting the sales, marketing and the flat glass quality as well assupervising the quality of automative glass product.

10. Non Executive Director is responsible for bridging the interest of the majority shareholders and the Company.

11. Independent Director is responsible for managing Corporate Affairs activities.

Procedures and Determination of Remuneration of Board of Directors Based on the Company's Performance

On June 5, 2015, AGMS delegated the authority to determine salaries and/or benefits received by the Board of Directors and Boardof Commissioners. Based on the Nomination and Remuneration Committee's recommendations, the Board of Commissionersdetermined the salaries and/or allowances received by all members of the Board of Directors for 2015 amounting to Rp 26,197 million.

In determining salaries and/or allowances of all Members of the Company's Board of Directors, the Board of Commissioners alwaystakes into account of various factors, one of which is the realization of the Key Performance Indicator (KPI) achievement and theCompany's soundness. The Company's good performance will also provide added value to the performance assessment of theCompany's Board of Directors.



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1011121314

No.Month

Name Position

Board of Directors Meeting

Mampei ChiyodaTjahjana Setiadhi**E. David Satria Soetedja***Naomasa TaniguchiMitsuhiro YoshikadoYoshiki Inoue**Sadayoshi Shinotsuka*Prasetyo AjiMichitaka Goto*Yasushi Kawamoto**Tjio Ferry SusantoMohamad Amien*Tatsuo SugiyamaRusli Pranadi

President DirectorVice President DirectorVice President DirectorDirectorDirectorDirectorDirectorDirectorDirectorDirectorDirectorDirectorDirectorIndependent Director

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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* has been serving since June 5, 2015** no longer served after June 5, 2015*** served as Director up to June 5, 2015 and started to serve as Vice President Director in June 5, 2015

• Attending - Not Serving

Board of Directors and Board of Commissioners Joint Meeting

There were 2 (two) BOD-BOC Joint Meetings held in 2015, i.e. on April 29, 2015 and December 18, 2015. The two meetings wereattended by almost all members of the Board of Directors and Board of Commissioners.

GENERAL MEETING OF SHAREHOLDERS

The Company's Annual GMS was held on June 5, 2015 at Hotel Holiday Inn Jakarta Kemayoran, Jakarta. The GMS materials, agendaand procedures were already in accordance with OJK Regulation No. 32/POJK.04/2014 on the Planning and Holding of the GeneralMeeting of Shareholders of Public Company.

Announcement and Invitation

GMS Announcement was conducted on April 28, 2015 or 14 (fourteen) days before the GMS Invitation, without calculating theAnnouncement date and Invitation date. While the GMS Invitation and agenda including agenda explanation were held on May 13,2015, or 21 (twenty-one) days prior to the GMS, without calculating the invitation date and the GMS date. The Company also publishedcurriculum vitae of candidates for members of the Board of Directors and/or members of the Board of Commissioners to be electedon the Company's website in conjunction with the Invitation on May 13, 2015.

GMS Announcement and Invitation were done through national newspapers in Indonesian language as well as through the Company'swebsite in two languages and on the Indonesia Stock Exchange's website.

Annual GMS Voting and Votes Counting

Decision making, mechanism, and voting procedures are set in the GMS Rules which being read at the beginning of the GMS holding.Any Shareholders or proxies have the right to ask and/or submit opinions to the Meeting Chairman before voting for each meetingagenda.

Whereas in votes counting, each share entitles its owner to cast 1 (one) vote. If a shareholder has more than one share, he/she isonly asked to give one vote and that vote represents all the shares he/she owns or represents.

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Board of Directors Meeting

BOD Meeting shall be held at least once in every month while BOC-BOD Joint Meeting shall be carried out periodically at least oncein 4 (four) months. The procedure for holding the Meeting is set in the Board of Directors Guidelines referring to OJK Regulation No33/POJK.04/2014.

During 2015, the Board of Directors held 12 (twelve) meetings, while the attendance of the Board of Directors members at themeetings are as follows:



for the term of office until the closing of the AGMS in 2016.

for the term of office until the closing of the AGMS in 2017.

President Director MAMPEI CHIYODAVice President Director E. DAVID SATRIA SOETEDJADirector NAOMASA TANIGUCHIDirector MITSUHIRO YOSHIKADODirector SADAYOSHI SHINOTSUKADirector PRASETYO AJIDirector MICHITAKA GOTODirector TJIO FERRY SUSANTODirector MOHAMAD AMIENDirector TATSUO SUGIYAMAIndependent Director RUSLI PRANADI

5 a. Gave authority to the Board of Commissioners to determine the amount of salary and allowances for members of the Boardof Directors, and gave authority to the Board of Commissioner meeting to determine the amount of salary/allowances foreach member of Board of Commissioners for 2015.

b. To determine the amount of salary and/or allowances for all members of the Board of Commissioners, including IndependentCommissioner in USD not exceeding USD 750,000 (per annum).

2015 GMS Resolution and its Realization

The 2015 Annual GMS resolved 5 proposed agenda through voting mechanism. Details of the resolutions realized in 2015 are asfollows:

1. Approved and endorsed the Company's Annual Report for the 2014 financial year including the Company's Annual Report, Reporton Board of Commissioners Supervisory, and Financial Statements for the 2014 financial year audited by Public Accountants Firm"Siddharta Widjaja & Rekan” (a member firm of "KPMG International") with "unqualified" opinion as contained in the reportdated March 25, 2015 No. L.14-4324-15/III.25.001; fully discharged the Board of Directors and the Board of Commissioners(acquit et de charge) from their responsibilities in respect of the management actions and supervisory actions that were alrreadyperformed, as long as the actions are reflected in the said Annual Report.

2. a. Determined the use of the Company's net income for the 2014 financial year as follows:i. as much as Rp 34.720.000 will be distributed as cash dividends to the Company's shareholders so that each share will receive

Rp 80 cash dividend.ii. as much as Rp 4,500,000,000 will be allocated and recorded as statutory reserved fund;iii.as much as Rp 419,415,000,000 will be recorded as retained earnings to be used to increase the Company's working capital.

b. Granted power and authority to the Company's Board of Directors to perform any and all actions necessary in connection withthe above-mentioned resolutions, in accordance with the prevailing legislation.

3. Delegated authority to the Board of Commissioners, to select and assign public accountants firm to audit the Company's financialstatements for the 2015 Fiscal Year and determine the fees and terms of appointment.

4. a. Released and fully discharged (acquit et de charge) members of the Board of Directors whose terms of ofice ended immediatelyafter the closing of this meeting, for the management actions and supervisory actions undertaken during their service asmembers of the Board of Commissioners and the Board of Directors, as long as their actions are reflected in the Company'sbooks or records.

b. Approved the change of the Board of Commissioners and Board of Directors composition to be as follows:

President Commissioner TAN PEI LINGVice President Commissioner MASAHIRO TAKEDACommissioner TJAHJANA SETIADHICommissioner TAKEO TAKEIIndependent Commissioner BENYAMIN SUBRATAIndependent Commissioner HIDEYA TANAKA



Resolutions of the Extraordinary GMS were as follows:

a. Approved, amended and restated the Company's Articles of Association, including to amend the Articles of Association inorder to adapt to the OJK regulations, as described in the Meeting.

b. Agreed to grant the authority and power to the Board of Directors, with substitution right, to perform any and all measuresrequired in connection with the resolutions, including but not limited to state the resolutions in a notarial deed, amendand/or reinstate the Company's Articles of Association in accordance with the resolution (including to reaffirm shareholdersstructure in the notarial deed if required), as required by and in accordance with the prevailing legislation, make or order tomake as well as to sign deeds and letters or documents required, and subsequently to apply for approval and/or notify theresolutions of this Meeting and/or amendments in the Articles of Association, to the relevant institutions as well as performany and all necessary measures, in accordance with the applicable rules and regulations.

All resolutions of the Annual GMS and Extraordinary GMS in 2015 are already realized by the Company.

AUDIT COMMITTEE

To support GCG implementation, in 2001 the Board of Commissioners established the Audit Committee, whose term of office shallbe no longer than the term of office of the Board of Commissioners as stipulated in the Company's Articles of Association and canbe reaapointed for only 1 (one) next period.

The Audit Committee consists of four (4) members, including Independent Commissioner who also acts as Chairman, and three (3)members from independent outsiders. In accordance with the 2015 OJK Regulation No. 55, all members of the Audit Committee haveno affiliation with members of the Board of Commissioners, members of the Board of Directors, or the Company's shareholders.

The latest composition Audit Committee based on the Board of Commissioners Decision No.001/ AMFG.COM/V-2013 dated May 31,2013 is as follows:

1. Benyamin Subrata (Chairman)Benyamin Subrata serves concurrently as the Company's Independent Commissioner and Audit Committee Chairman. He completedhis education in Mechanical Engineering in Sussex University, the United Kingdom. For more than 30 years, he has been activelyhandling and managing business in construction, property, insurance, retail, industry, mining and electrical power. He has beenserving as Audit Committee Chairman for 2 (two) periods: 2010-2013 and 2013-2016. At present he also serves as Commissionerand Director of several companies that are not affiliated with the Company.

2. Dr. A. Partomuan Pohan, SH. LL.M (Member)Dr. A. Partomuan Pohan, SH. LL.M is a graduate of the Faculty of Law of Universitas Sriwijaya (Bachelor's degree), University ofWashington, Seattle-USA (Master's degree) and Airlangga University (Doctorate degree). He has been serving as member of AuditCommittee for 2 (two) periods: 2010 - 2013 and 2013 - 2016. From 1974 to October 2011, he led the office of Public Notary andLand Deed Officer (PPAT) ”Dr. A. Partomuan Pohan, SH. LL.M”. He is still active as Chairman of the Centre of Company Law andNotarial Study Foundation (YPPHPN), member of the Board of Experts of Indonesian Listed Companies Association (AEI), andSecretary of Indonesian Institute of Commissioners and Directors (LKDI) and Lecturer in the Master of Law Study of the Universityof Indonesia.

3. Ir. Susanto (Member)Ir. Susanto has an educational background in Electrical Engineering from Trisakti University, Jakarta, and has worked with theCompany since 1972, he served as Director of the company from 1996 to 2006. He has been serving as Member of the AuditCommittee for 2 (two) periods: 2010-2013 and 2013-2016.

4. Drs. Hariawan Pribadi (Member)Hariawan Pribadi is a graduate from the Faculty of Economics, Accounting Department of Gajah Mada University. He has abackground in Accounting and Finance. From 1971 to 1976 he worked in the Directorate General of State Finance Supervisory.From 1976 to 1988 he served as Partner in Public Accountants Firm Hanadi Rahardja and co-member firm at Grant ThorntonInternational and from 1988 to 1998 as Executive Partner at Public Accountants Firm Hanadi Sudjendro & Partners - member firmof KPMG. From 1998 to 2002 as Executive Partner at Public Accountants Public Firm Hanadi, Sarwoko & Sanjaja - member firmof Ernst & Young Global and from 2002 to 2004 as Advisory Board at Public Accountants Firm Prasetio, Sarwoko & Sandjaja -member firm of Ernst & Young Global. He serves as the Audit Committee Member from 2013 to 2016.



Benyamin SubrataDr. A. Partomuan Pohan, SH, LL.MIr. SusantoDrs. Hariawan Pribadi

ChairmanMemberMemberMember

9141315

Name PositionNo. of Meetings

attended

Duties of Audit Committee

The Audit Committee has task to assist the Board of Commissioners in performing supervisory functions in accordance with the dutiesand responsibilities specified in the Audit Committee Charter as follows:

1. To review the financial information that will be published by the Company to the public and/or authorities, among others, FinancialStatements, Financial Projections and other statements relating to the Company's financial information.

2. To review the Company's compliance with laws and regulations related to the Company's activities.3. To provide independent opinion in the event of disagreements between management and the public accountants (External

Auditor) on the services rendered.4. To provide recommendations to the Board of Commissioners on the appointment of accountants which are based on independence,

scope of assignment and audit fee.5. To review the implementation of investigation by the Corporate Internal Audit.6. To review complaints related to accounting and financial reporting processes of the Company7. To review and report to the Board of Commissioners on complaints related to the Company.8. In performing its duties, the Audit Committee keeps confidential the Company's documents, data and information.

Audit Committee Meeting Policy

In accordance with the Audit Committee Charter, the Audit Committee convenes at least four (4) times a year. Throughout 2015,the Audit Committee convened 15 (fifteen) meetings with the attendance level as follows:

The agenda of Audit Committee meetings in 2015 is as follows:

1. To review of the Company's 2015 business plan prepared by the Board of Directors.2. To review the Company's Financial Statements as of December 31, 2014 along with the Company's Management and External

Auditor.3. To monitor the improvement of the Company's GCG in order to implement ASEAN Corporate Governance Scorecard.4. To share information regarding Audit Committee Seminar materials held by IKAI (Indonesian Institute of Audit Committee) followed

by the Company's Audit Committee members to the Company's management.5. To communicate directly with Jakarta's Plant Maintenance Division, Corporate HSE and Flat Glass Sales & Marketing Center as

the implementation of the Audit Committee Charter concerning the Audit Committee Authority.6. To review several OJK regulations namely the 2014 POJK No. 32, 33, 34 and 35.7. To review the draft of the Board of Commissioners, Board of Directors and Nomination and Remuneration Committee Charters.8. To review amendments to the Company's Articles of Association in 2015.9. To review and give recommendation on the appointment of External Auditors to audit the Company's Financial Statements for

the 2015 financial year.10. To conduct discussions with the Company's External Auditors on the preparation of audit of the Company's 2015 Financial

Statements.11. To review results of the examination conducted by the Corporate Internal Audit during 2014.12. To conduct assessment on Corporate Internal Audit operations.13. To review of the Company's performance every quarter during 2015.14. To discuss with management the investments made by the Company.15. To visit major projects being developed by the Company, namely the construction project of new flat glass factory in Cikampek.16. To review the Company's business results in 2015.

In performing its supervisory duties, the Audit Committee coordinates with Corporate Internal Audit. The Audit Committee providesmonthly reports in the minutes of meetings to the Board of Commissioners containing information of matters of importance, amongothers:

1. The Company's management in 2015 has adhered to the provisions of prevailing laws and regulations.2. The Company's financial statements of the financial year ending December 31, 2015, are already made in accordance with

Statement of Financial Accounting Standards (SFAS) and Bapepam-LK Regulation No. VIII.G.7 regarding Financials StatementPresentation and Decision No. KEP-347/BL/2012 regarding amendments to Regulation No. VIII.G.7.



1.2.3.

Name PositionNo.

Benyamin SubrataTan Pei LingTjahjana Setiadhi

Chairman (Independen Commissioner)Member (President Commissioner)Member (Commissioner)

3. The Company's financial statements for the financial year ending December 31, 2015 are already audited by Public Accountants Firm Siddharta & Widjaja, member of KPMG International, based on the Auditing Standards established by the Indonesian PublicAccountant Institute with unqualified opinion.

4. Internal control system has functioned effectively

NOMINATION AND REMUNERATION COMMITTEEIn order to improve the application of GCG principles in the Company with regard to the transparency of the Nominationand Remuneration process and to improve the quality, competency and responsibility of the Board of Directors andthe Board of Commissioners, the Company renewed the composition of the Nomination and Remuneration Committee inorder to conform with OJK Regulation Number 34/POJK.04/2014 on the Issuer and Public Company's Nomination andRemuneration Committee.

Membership and Term of Office

Pursuant to the stipulations on the Membership and Terms of Office provided in the OJK Regulation No. 34/POJK.04/2014,the Company dissolved the old Nomination and Remuneration Committee members and based on the Board of CommissionersMeeting Decision dated June 25, 2015, the Board of Commissioners has decided that the new membership of the Nominationand Remuneration Committee comprises of 3 (three) persons, all of which are members of the Board of Commissionersand the chairman is held by an Independent Commissioner, making the Company's Nomination and Remuneration Committeecomposition to be as follows:

Term of office of the Company's Nomination and Remuneration Committee will end at the 2016 Annual GMS or no longer than theterm of office of the Board of Commissioners as set out in the Articles of Association. Profiles of the members of the Nomination andRemuneration Committee can be seen in the Profiles of the Board of Commissioners.

Nomination and Remuneration Committee Charter

In 2015, the Company's Nomination and Remuneration Committee (NRC) released NRC Charter. The Charter was already approvedand signed by all members and are binding all members of the Nomination and Remuneration Committee. The Charter includes theprovisions on duties and responsibilities, composition and membership structure, procedures and working procedures, committeemeetings, activity reporting system, procedures for replacing members, term of office and values. The Charter should be publishedin full on the Company's website, i.e. www.amfg.co.id.

Nomination Function

Based on the NRC Charter, there are four categories related to the nomination function, namely:

1. Provide recommendations to the Board of Commissioners on:a. Composition of the Board of Directors and/or the Board of Commissioners;b. Policies and criteria required in the Nomination process;c. Performance evaluation policy for members of the Board of Directors and/or the Board of Commissioners.

2. Assist the Board of Commissioners in assessing the performance of the Board of Directors and/or the Board of Commissionersmembers based on the benchmarks developed as an evaluation.

3. Provide recommendations to the Board of Commissioners regarding capacity building programs for the Board of Directors and/orthe Board of Commissioners members.

4. Propose qualified candidates as the Board of Directors and/or the Board of Commissioners members to the Board of Commissionersto be submitted to the GMS.

Remuneration Function

Based on the NRC Charter, there are two categories related to remuneration function, namely:1. Provide recommendations to the Board of Commissioners on:

a. Remuneration structure;b. Remuneration policy and remuneration amount.

2. Assist the Board of Commissioners in conducting performance appraisal in conformity with the remuneration received by eachmember of the Board of Directors and/or the Board of Commissioners.



Duties and Responsibilities

The Nomination and Remuneration Committee is a committee established by and responsible to the Board of Commissioners toassist the Board in carrying out its functions and duties related to Nomination and Remuneration of the Board of Directorsand the Board of Commissioners. In performing its duties, the Nomination and Remuneration Committee makes decisionsindependently. Since the establishment of the new membership, this Committee has taken several decisions, including:

1. Provide recommendations to the Board of Commissioners on conditions and rules for the Company's Board of Commissioners;2. Provide recommendations regarding changes to the Board of Commissioners and the Board of Directors and remuneration policy

making for each member of the Board of Commissioners and the Board of Directors;3. Formulate the contents of the NRC Charter to conform to OJK regulations.

Nomination and Remuneration Committee Meeting

NRC Meeting is held periodically at least once in 4 (four) months. Procedures for holding NRC Meeting has been set out in the NRCCharter as referred to in OJK regulation No. 34/POJK.04/2014. Since the new Nomination and Remuneration Committee formation,there have been 2 (two) NRC meetings, i.e. on May 27 and June 25, 2015 with 100% attendance rate of each NRC member.

RISK MANAGEMENT AND INSURANCE COMMITTEE

Risk Management and Insurance Committee is formerly a Committee under the Board of Commissioners, but in line with therequirements, the Committee is now under the Board of Directors. This Committee is tasked to design a strategic policy and controlthe risks that will be encountered by the Company, such as Operational risk, Finance risk, Legal risk, and Hazard risk. Based on theBoard of Directors Decision dated August 26, 2015, the new membership of Risk Management and Insurance Committee comprisesof 9 (nine) members of the Board of Directors, namely:

Chairman Member

Profiles of the members of Risk Management and Insurance Committee can be seen on the Profiles of the Board of Directors. During2015, this Committee organized 3 (three) meetings on April 13, August 13 and November 5, 2015 with 100% attendance rate. TheCommittee also provides advices and recommendations to the Board of Commissioners in respect to the risks on the Company'sassets and wealth that need to be insured.

DISCIPLINE AND COMPLIANCE COMMITTEE

Disciplinary and Compliance Committee is formerly Compliance Committee under the Board of Commissioners and DisciplinaryCommittee under the Board of Directors, but in line with the requirements, the two committees were combined into one committeeand is now under the Board of Directors. This committee is responsible for the implementation of the Company's compliance uponthe applicable laws and regulations, including internal regulations existing in the Company. Based on the Board of Directors Decisiondated August 29, 2015, the new membership of Discipline and Compliance Committee comprises of 9 (nine) members of the Boardof Directors as follows:

Chairman Member

Profiles of the members of Discipline and Compliance Committee can be seen in the Profiles of the Company's Board of Directors.

In 2015, this Committee held 2 (two) meetings, i.e on May 7, 2015 and December 4, 2015, to discuss various issues related to theCompany's compliance in carrying out the operations. Attendance rate of the two meetings was 100%. Important decisions producedby this Committee are as follows:

1. Evaluation on the implementation of compliance regulatory policies both with capital market regulations and the Company'sinternal regulations

2. Evaluation of reports on breaches conducted by employees in 2015 and suggestions to improve the procedure to impose sanctionsfor breaches.

CORPORATE SECRETARY

Corporate Secretary plays an important role in creating good communication between the Company and its shareholders and other stakeholders. The function of Corporate Secretary is to ensure

the dissemination of material information in a timely and accurate manner to all stakeholders.

The Board of Directors has appointed Christoforus as Corporate Secretary by virtue of theBoard of Directors Meeting Decision No. 002 / AMFG-BOD / 04-2014 dated April 30, 2014.The appointment was already reported to OJK and BEI (IDX) and other capital market

supporting institutions on May 13, 2014, which became effective on May 20, 2014. Christoforus graduated from Tarumanagara University majoring in Management in 1995, and joined the Company

in 1999. Prior to becoming Corporate Secretary, he has occupied various positions in the Company, mostrecently as Assisstant Center Manager in the Purchasing and Logistics.

Corporate Secretary is responsible to the Board of Directors for the matters related to Good Corporate Governance and the Company'scompliance with the prevailing laws and regulations especially the capital market regulations. Several activities carried out by CorporateSecretary in 2015 include the following:

a. To keep abreast of developments in the capital market and its regulations and give input to the BOD and the BOC to comply withthose regulations.

b. To attend Board of Directors Meetings regularly and prepare minutes of meetings.c. To organize GMS and Dividends distribution in accordance with the procedures set out in OJKRegulation Number 32/POJK.04/2014.d. To amend the Articles of Association to comply with OJK's new regulations.e. To adjust the schedule of BOC Meeting and BOD Meeting as well as BOC-BOD Joint Meetings, help prepare BOC and BOD Charter

to comply with OJK Regulation No. 33/POJK.04/2014.f. To assist the BOC in adjusting Nomination and Remuneration Committee composition and Charter in line with OJK Regulation

No. 34/POJK.04/2014.g. To make changes to the contents of the Company's website in order to comply with OJK Regulation No.8 /POJK.04/2015.h. To continue disseminating the Company's Code of Conduct and Whistleblowing System to all employees.i. To organize the Company's Public Expose in conjunction with the Investor Summit and Capital Market Expo 2015 in the Indonesia

Stock Exchange Building.j. To assist the Board of Directors and the Board of Commissioners in adjusting the Company's GCG implementation in line with

OJK Regulation and GCG Guidelines for Public Companies.k. To welcome visit and teleconference from investors and analysts to know directly the Company's latest development.l. To perform mandatory reporting to regulators in a timely manner, including annual reports, financial statements, GMS reports,

Advertisement Proof Report, Public Expose, Monthly Report of Securities Holders Registration, Report of Company Debts/Liabilitiesin Foreign Exchange and others.

Throughout 2015, Corporate Secretary attended trainings, among others:

1. Discussion on OJK's new Regulations No. 32-36 Year 2014 by OJK.2. OJK's New Regulations Enforcement by the Capital Market Legal Consultants Association.3. Code of Conduct of Board of Commissioners and Board of Directors by the Indonesian Corporate Secretary Association.4. Submission of the Issuer's Financial Statements in accordance with the 2015 SFAS by the Indonesian Central Securities Depository.5. Corporate Governance Training by OJK.6. Indonesia National XBRL Conference by the Indonesia Stock Exchange.7. Public Seminar on Business Competition Supervisory Commission (KPPU)'s Business Competition Examination by the University

of Pelita Harapan.8. Anti Trust Seminar by Asahi Glass Co. Ltd., Japan.9. GCG Guidelines for Public Company by OJK.10. Monthly seminar held by Indonesian Corporate Secretary Association.



CORPORATE INTERNAL AUDIT

Internal Supervision and Control

The Company's Corporate Internal Audit was established on June 21, 2009. Head of Corporate InternalAudit is Patikkos Siahaan, pursuant to the Board of Directors Decision No. 002/AMFG-BOD/05-2013 datedMay 29 2013. Previously, the Company's internal control function was named Internal Control Groupand formed in 2000.

Structure and Position of Corporate Internal Audit

The Company's internal supervision and control are evaluated by Corporate Internal Audit chaired by Headof Corporate Internal Audit who directly reports to the Company's President Director and Vice President Director.



Flat GlassGeneral Division Corporate Automotive Glass

General Division

Board ofDirectors

Board ofCommissioners

GMS

AuditCommittee

CorporateInternal Audit

Profile of Head of Corporate Internal Audit

Patikkos Siahaan, has been serving as the Company's Head of Corporate Internal Audit since June 1, 2013. He earned his Bachelorof Accounting from Sekolah Tinggi Ekonomi Indonesia in 1995 and passed his State Exam in Accounting with Accountant State Registry(RNA - 8419) in 2015, obtained his Qualified Internal Auditor (QIA) Certification No: 3309/QIA/2012 and Chartered Accountant (CA)Certification in 2013. In addition, he also has an experience as Finance & Accounting Manager at the Company's factory in Cikampek.

Number and Competency of Corporate Internal Audit Employees

By end of December 2015, the Company's Corporate Internal Audit had 3 (three) members, including 1 (one) Head of CorporateInternal Audit.

To improve competencies and capabilities of Corporate Internal Audit personnel, the Company registered all members of theCorporate Internal Audit in the Qualified Internal Auditor (QIA) certification program held by “YPIA” Internal Audit EducationFoundation.

Corporate Internal Audit Charter

In accordance with Regulation No. IX.I.7 the Attachment of Bapepam and LK Chairman Decision No. KEP-496/BL/ 2008 regarding theEstablishment and Guidelines for Internal Audit Charter, the Company's President Director and Vice President Director set forthInternal Audit Charter on November 10, 2009 as the details of the vision and mission as well as functions, duties and responsibilities,authority and scope of work of the Company's Corporate Internal Audit.



Transportation & Delivery Cost in Flat Glass Factory in JakartaSpecial Budget & Work Order in Flat Glass Factory in SidoarajoSales, Accounts Receivable & Terms of Payment in Subsidiary (PT Auto Glass Indonesia)Suspense, Advance payment and Petty Cash at the Company's three FactoriesPayroll Process in Jakarta's Flat Glass FactoryInventory Sub Material in Cikampek's Otomotive Glass FactoryInventory Store Good in Jakarta's Flat Glass FactoryWaste Material Management in Jakarta's Flat Glass Factory

Audit SubjectNo. Period

Jan - FebMar - AprMay - Jun

JulJul - AugSep - OctOct - DecNov - Dec

12345678

Duties and Responsibilities based on Corporate Internal Audit Charter

Corporate Internal Audit is tasked to provide assurance and independent and objective consultation in order to increase the Company'sadded value and improve the Company's operations by examining, evaluating, giving advice for improvements and increasing theeffectiveness of risk management control and GCG as stipulated in the Corporate Internal Audit Charter, which regulates the dutiesand responsibilities of the Corporate Internal Audit as follows:

1. To prepare and implement annual work plan of Internal Audit;2. To examine and evaluate the implementation of internal control and risk management system in accordance with the Company's

policies;3. To examine and assess the efficiency and effectiveness in finance, accounting, operations, human resources, marketing and

information technology and all other aspects of the Company's activities.4. To provide advice for improvements and objective information regarding the activities at all management levels.5. To prepare audit reports and submit the reports to President Director and Vice President Director as well the Board of Commissioners.6. To monitor, analyze and report to the Company's President Director and Vice President Director the implementation of follow-

up of the suggested actions for improvements;7. To work closely with the Audit Committee.8. To develop programs to evaluate the quality of internal audit activities performed by Corporate Internal Audit.9. To conduct special audit if necessary.

Corporate Internal Audit Activities in 2015

In 2015, Corporate Internal Audit carried out audits in accordance with the Annual Audit Plan (AABP), approved by the PresidentDirector and Vice President Director, among others:

INTERNAL CONTROL SYSTEM

Financial and Operational Control

An effective Internal Control System (“SPI”) is an important component for the Company and a foundation for the Company's healthyand safe operations. SPI assists the Company in control mechanism such as assets maintainance, impact of loss, and compliance withlegislation.

The Company has formed an effective SPI to assist the Company in obtaining reliable financial information, enhancing the Company'scompliance with the applicable laws and regulations, as well as mitigating the risks of financial and operational losses, fraud andemployee disciplinary violation.

Evaluation of Internal Control System Effectiveness

To evaluate the effectiveness of SPI, the Company has established Corporate Internal Audit (CIA) which serves as Internal Audit Unit.Result of CIA evaluation becomes a basis for the Management to evaluate SPI effectiveness and determine improvement andenhancement of systems or policies that allow management to run operational activities more effectively in accordance with GoodCorporate Governance.

RISK MANAGEMENT SYSTEM

The Company's Risk Management System

At the moment, the Company has in place risk management governance infrastructure as well as other supporting elements thatsupport the system. The Company has formed Risk Management & Insurance Committee that assists the Company in monitoring,controlling and managing risks. The Committee is responsible for identifying, evaluating, controlling and mitigating the risks facedby the Company.



Risk Profile and Management Method

The Company's Risk Management and Insurance Committee has classified four (4) categories of risks in the Company's business, asfollows:

1. Operational RiskOperational risk includes management of the risks related to:• Availability of labors• Availability of raw materials and energy• Quality of relationships with the communities in the surrounding of the Company's factories.

The Company has undertaken operational risk management by performing the following actions:• Rearrange the activities related to the Company's main activities.• Make efficient use of energy and raw materials.• Improve the quality of a harmonious relationship with the local community through community development programs.• Conduct a comparative study to other companies with regard to operational activities.

2. Financial RiskThe Company classifies financial risk to include fluctuations in foreign currency exchange rates, changes in laws and regulationsrelated to finance, risk of a breach in taxation and commitment in implementing Capital Market regulations.

To minimize this risk, in 2015 the Company continued to increase export sales, so that the Company's revenues in foreign currencycan be protected naturally (Natural Hedging). For working capital purposes and investment, the Company has also secured creditfacility from Bank that can be used by the Company when required.

The Company also always keeps abreast of the development of the laws related to finance in order to overcome financial risksthat may emerge.

3. Legal RisksTo manage legal risk, the Company always ensures that all business activities are in compliance with applicable laws and regulationsboth domestically and internationally.

The Company continues to conduct regular evaluation on the level of its compliance in running its business. The Company hasin place experienced personnel in the field of law and established cooperation with some legal counsels. The Company alsoconducts education and training for management and employees regarding legal knowledge and disseminates new regulationsrelated to the Company's business activities.

4. Hazard RiskHazard Risk may occur at any time and the Company believes that special attention to this matter is necessary. Such risk includesoccupational health and safety, environmental and natural disasters.

To overcome the above risks, in 2015 the Company undertook several efforts, among others:

a. Carrying out dissemination and trainings on occupational health and safety intensively and sustainably. From time to time,the Company checks the working condition in order to work safely.

b. Conducting health education and regular medical check-up and blood donors.c. Establishing a standardized measurement system for analyzing waste and disposal proceeds.d. Forming Emergency Responses Team (ERT) and simulating emergency trainings related to tsunami and earthquake.

Risk Management Evaluation

Risk Management and Insurance Committee together with the Board of Directors perform an evaluation to risk managementbased on results of the audit that has been done. Results of this evaluation are informed to related divisions for follow upand correction.

SIGNIFICANT CASES

Throughout 2015, the Company did not confront any critical material case that involved members of the Board of Commissioners,Directors and Employees which might affect the Company's condition.



ADMINISTRATIVE SANCTION

During the 2015 financial year, there was no administrative sanction imposed to the Company, the Board of Commissioners and Boardof Directors, either by capital market authorities.

CODE OF CONDUCT AND CORPORATE CULTURE

The Company has in place Code of Conduct since 2002. As part of AGC Group, the Company has also adopted AGC Group'sglobal principles since 2008. The value contained in the Code of Conduct has been disseminated to all Company's employeesand management.

Principles of Code of Conduct

The principles contained in the Company's Code of Conduct are as follows:

1. Foundations for Compliance2. Fair Competition and Antitrust3. Workplace Health and Safety4. Environment5. Respect for People6. Quality and Safety of Products and Services7. Reports and Records8. Insider Trading0. Company and Third-Party Assets and Confidential Information10. Conflict of Interest11. Gifts and Entertainment12. Relations with Government Officials and Politicians13. International Trade Controls14. Confrontation With Anti-Social Powers15. Audit System

Principles of Corporate Culture

In carrying out all activities both in business activities as well as in behaving, the Company has always underlined the values that havebeen embedded by the Company's founders, namely:

1. Pioneering Spirit2. Honesty and Sincerity3. Cooperation Spirit4. Creative Thinking5. Responsible

These values have become part of all employees and management in carrying out its activities.

Dissemination and Enforcement of Code of Conduct

The Company continues to disseminate its Code of Conduct through communication media owned by the Company. In 2015,the Company produced an animation video on Code of Conduct with a view to make the Code of Conduct more effectiveand the embedded values can be understood by all employees.

Members of the Board of Commissioners, Directors and Employees who violate the Code of Conduct will be given sanctionsin accordance with the prevailing legislation and applicable company regulations.

Enforcement of Code of Conduct

The Company's Code of Conduct applies to all employees, the Board of Directors and Board of Commissioners. Every year, allemployees, Directors and Commissioners always renew their commitment to adhering to the Code of Conduct by signing thePersonal Certificate stating that they have understood the contents of the Code of Conduct and are committed to adheringto the contents.

STOCK OWNERSHIP PROGRAM

The Company has no stock ownership program for employees and/or management.



WHISTLEBLOWING SYSTEM

In order to support its GCG implementation, the Company has provided Whistleblowing System or commonly known asHelpline Service. This service is addressed to the employees and stakeholders of the Company in order to participate inimproving supervisory function on the breaches that may occur in the Company. For employees and stakeholders whowish to report indications of corruption, collusion, fraud, bribery, conflict of interest, theft, breach of other material but feel hesitateor fear his/her identity will be revealed as he/she knows the doer, the person can report it using the Helpline Serviceprovided by the Company.

How to Report a Breach

The Company has provided facilities to report any breach and irregularities that may be detrimental to the Company through severalmeans, among others:

• SMS : 0815 898 9999• Email : [email protected]• Facsimile : (021) 6983 7578• Written correspondence to the Company's address

Protection of the Informant

Each stakeholder is most welcome to make reports of irregularities occurring in the Company. The Company provides protectionto those who report the occurrence of irregularities and breaches. Information submitted to the Helpline Service must beaccountable to avoid any slander on the defendant.

Handling of Complaints and The Party Managing the Complaints

For each information and report from employees or stakeholders, the Company has established a Compliance Team responsiblefor handling and managing the submitted information and reports. Compliance Team will act in accordance with theCompany's Complaints Service Standard Operation Procedure (SOP). Compliance Team will attempt to investigate all reports received equitably and thoroughly and will take appropriate actions. Results of these investigations will be submitted to theCompliance Committee and also the informant (whistleblower) who provides such information.

Results From Complaints Handling

During 2015, there was no complaint submitted through the Helpline Service; however, it did not mean that there was no violationoccurring in the Company. Despite no complaint/report submitted to the Complaint Service, violations still occurred. The Companybelieves that the use of this facility needs to be improved. The Company will continue the dissemination of this Complaint Servicealong with Code of Conduct.


CORPORATE SOCIAL RESPONSIBILITY ANDENVIRONMENT

Being part of the community, the Company runs its business activities by always striving to contribute and actively participate insolving various problems that occur in the community. The Company wishes to continue growing and developing along with thecommunity by creating a harmonious relationship with the community in the vicinity of its business locations. Thus, the Company'sexistence can benefit and meet the expectations of stakeholders, i.e. customers, business partners, governments, shareholders,employees and the surrounding community.

For that reason, the Company conducts corporate social responsibility activities or CSR, which is now already known to the public.The Company has conducted CSR activities for a long time in nearby locations and outside the Company's business locations. TheCompany realizes the importance of giving and sharing, not merely to enhance its reputation, but also to help the Company continuouslygrows, develops, and provides sustainable benefits for stakeholders.

The Company realizes that social responsibility is an integral part of its business operations. All of its business activities arecarried out in a responsible manner with a view to bring a positive impact on the community. The Company believes, when allelements of the society including the business community seriously consider the positive impact of every activity, all partieswill get benefit from it.

In carrying out CSR activities, the Company has set forth CSR policies that become the guideline of CSR implementation activitiesacross its factories that are located in Jakarta, Sidoarjo and Cikampek, namely:

1. Support for the next generationSupporting the development of the young generation as the next generation with future and help them pursue their aspirations.

2. Harmonious living with the surrounding communitiesEstablishing a harmonious relationship and cooperation with the surrounding communities and empower communities in asustainable manner.

3. Environment ConservationPreserving the environment and contributing to overcoming environmental issues and producing products that are environmentallyfriendly.

The year 2015 was one of the significant momentums in the Company's journey to continuously contribute to community, withregard to the expansion of the Company's factory in Cikampek, West Java. The Company has a commitment to remaining consistentand continuously improving the performance of its CSR activities, including in the the new factory in Cikampek.

Expenses of CSR Activities

In accordance with prevailing laws and regulations, the Company has prepared an action plan and budget for all CSR activities approvedby the Board of Commissioners. For 2015, the Company has incurred approximately Rp1 billion or nearly the same with the total costincurred for the Company's CSR activities in 2014.

ENVIRONMENTAL RESPONSIBILITY

In line with its mission "To build the world a better place for living", the Company is obliged to take part in preserving the environment.To that end, the Company places its commitment to nature and social environment as priority and inseparable from its operatingactivities. In a way to realize it, the Company complements its business operations with environmental management documents inconformity with the governing regulations such as Environmental Impact Assessment (EIA/AMDAL/ANDAL) Document and EnvironmentalManagement Efforts -Environmental Monitoring Efforts Document (UKL-UPL). The aim is to estimate the impact that may be resultedfrom business operations, and evaluate and seek the right solutions to overcome. Thus, implementers of those activities have aguideline to manage the environmental impact at the Company's factories.

Along with the construction of its new factory in Cikampek, the Company remains committed and consistent to adhering to all aspectsrelated to nature and required permits. It is very important for the Company to keep the construction work run smoothly in orderto meet the predetermined schedule.

As a responsible citizen in creating a better living environment, the Company has in place a policy connected to the environmentnamely “Sustainable Contribution to the Earth through activities that are environmental friendly”.

The Company has five principals in running those environmental policies, namely:

1. Continuous improvement based on an integrated Environmental Management System (EMS/SML);2. Compliance with environmental regulations and requirements of PT Asahimas Flat Glass Tbk


CORPORATE SOCIAL RESPONSIBILITY AND ENVIRONMENT

3. Performing measures to mitigate environmental impacts and prevent pollution.4. Developing products, technologies, services and facilities that are environmental friendly.5. Communicating actively regarding environmental activities with stakeholders.

Green Activities by the Company are translated with the term 3G: Green Factory, Green Operation and Green Product. Elaborationof the 3G concept by the Company is as follows:

GREEN FACTORY

It has become the Company's commitment to applying the Green Factory concept in its factories environment. To support the creationof environmental friendly factories, the embodiment of Green Factory is reflected directly in the surrounding environments of theCompany's factories, where many trees and ornamental plants are planted to give a beautiful scene. The trees were planted byemployees and their families in 2010; the growth of the trees has been continuosly monitored and maintained. In addition, in thewater channels within the Company's environment, there are also several species of fish that can be seen with naked eye as meansof water quality monitoring. Healthy and fresh condition of the fish in the water channels indicates that the water in the channelsdo not contain harmful chemicals. Factories and offices also have quite good air and sunlight circulation. Some indoor and outdoorlightings already use LED so that they will be more efficient and durable. In addition, the Company also implements 5-S or 5-Rconsistently and continuously, so that all venues both indoors and outside look neat and clean.

In addition to tree planting in the factory environment, the Company's factory located in Jakarta with government agencies andsurrounding community also planted fruit trees, located not far from the Company's Jakarta factory. Currently, fruit trees producefruit that has been used by local people and became “Taman Hatinya” park, one of the PKK's model park in district level.

In the 2014-2015 PROPER assessment, the Company's factories in Jakarta, Cikampek, and Sidoarjo were awarded BLUE PROPER fromthe Ministry of Environment and Forestry, indicating the compliance of the three factories with the applicable environmental regulationsand management.

GREEN OPERATION

To support Green Operation concept, the Company uses Natural Gas (NG) in the running of flat glass factory operation. By using NG,the emission will be cleaner and friendlier to the environment compared to using fuel oil. The Company also seeks to reduce CO2emission unit in several ways, among others by:

1. Reducing fuel consumption2. Enlarging cullet ratio3. Increasing efficiency in the delivery process4. Increasing productivity, and5. Reducing utility6. Using environmental friendly materials

The Company's activities related to Green Operation, among others, are as follows:

Waste Management

Currently, waste is a fundamental problem for human life. For that reason, it is important for the Company to help to tackle thisproblem. Application of 3R or Reuse, Reduce, and Recycle is still the best way to manage and handle waste both in industry andsociety. In waste management, the Company also adopts the 3R program. Reuse means reusing waste that still can be used for thesame function or other functions. Reduce means reducing everything that will result in garbage, such as replacing wood box packingmaterial into iron pallets, which can be used again after the delivery. Recycle means recycling waste into new products that are useful,such as reusing cullets from the production process into raw materials. Implementation of the 3R program in the Company's wastemanagement activities will provide benefits because the waste that has been sorted will be easier to be processed and distributedto manufacture useful products.

In waste management, the Company has carried out several activities, among others:

1. Provide trash cans on each workspace and open space with three categories: Non-B3 (non-hazardous and nontoxic waste) bins,Metal bins and B3 (hazardous and toxic waste) bins.

2. Provide Temporary Storage Place of B3 waste from production processes that had permission from BPLHD. Furthermore, thiswaste is transported by a company that has a license (manifest) from the Ministry of Environment and Forestry to be transported,processed and managed.



3. The Company in cooperation with the communities around the factories to recycle paper water to be reprocessed into usefulproducts and recycle waste of dried leaves to be processed into compost.

Water Management

Water is the source of life for human and for the company as well, where water is used in the process of cooling equipment and glass-washing. Water used by the company are from PAM and water Reverse Osmosis/RO. for that reason, the Company should manageits use.

To reduce the use of PAM water in its operations, the Company's factory in Jakarta has made recycling process of waste water fromthe equipment cooling process and glass washing by mixing the waste water with sea water used as raw material, to be reprocessedinto fresh water by using "Reverse Osmosis / RO" technology. The RO process produces clean water that can be reused as equipmentcooling water and glass washing in the course of production process.

As for wastewater treatment, the Company's flat glass factories in Jakarta and Sidoarjo are already equipped with WastewaterManagement Installation facilities (IPAL). At the IPAL, wastewater is processed through various processes to eliminate or reducecontaminants (pollutants) contained in the waste so it does not exceed the quality standards. The Company also regularly conductslaboratory testing and reporting of wastewater to the Environmental Management Agency (BPLHD) and the Ministry of Environmentand Forestry (KLH). For the Compay's automotive glass factory located in Cikampek, waste water management is done through theIPAL owned by Bukit Indah Industrial Park, and the results are also reported regularly to the local BPLHD and KLH.

To indicate that the quality of waste water from the Company's operations does not exceed the quality standards, quality of the wateris checked on a regular basis in BPLHD. In addition, the Company's Health Safety & Environment (HSE) and QC laboratories routinelycheck the water quality in the laboratories owned by the Company.

Energy Saving Campaign

In addition to recycling and water management, the Company also carries out energy-saving campaign to encourage the culture ofelectricity, water and paper saving by placing stickers and banners on related objects both inside and outside the rooms of the factorypremises.

Certifications in Environment and Quality Management

In carrying out its mission "To build the world a better place for living" that is aligned with one of its CSR policy of "Preserving theEnvironment", the Company continues to raise awareness of the environment by adhering to international standards for EnvironmentalManagement System (EMS/SML). One of the systems that can be used in achieving EMS implementation is ISO 14001: 2004. Withthis system, the Company can ensure that the process carried out and the products have met the commitment to the environment,particularly compliance with the regulations in the field of environment, pollution prevention and commitment to continuousimprovement. The Company's factories in Jakarta, Sidoarjo and Cikampek have obtained environmental certifications namely ISO14001: 2004 since 2005, with the last audit on this ISO 14001: 2004 certification was done in April 2014 by DNV Malaysia, aninternationally recognized independent agency of ISO audit.

The Company realizes the importance of the environmental management system in the implementation of its business activities. Toenhance SML practices, the Company has determined ISO 14001: 2004 as mandatory training for all employees. To continuouslyimprove its SML, the Company requires all employees to pay attention to several issues inthe ISO 14001 policy, namely:

1. Employees must know the environmental policy.2. Employees must know the environmental programs in their respective Departments.3. Employees must obey the rules/ procedures related to the environment.4. Employee must deliver inputs or ideas regarding environmental improvement in their respective working places.5. Employees must participate in the environmental audit conducted on a regular basis.6. Employees must strive to prevent pollution of the environment in their respective working places.

GREEN PRODUCT

Today the market and consumer demands for products that are environmentally friendly (“Green Product”) continues to increase.In response to that, the Company continuously creates Green Products. Green Product is defined as a product that must conformto the environmentally friendly requirements. Nowadays, consumers already have a heightened awareness in the use of GreenProducts that are free of chemical elements that can harm health and the environment.



In line with such understanding, the Company has launched Green Products of flat glass under the brand “Sunergy”. Sunergy glasshas several advantages: environmentally friendly and energy efficient. This type of glass has a low light reflection and energy efficientbecause of the double coating on the glass surface that makes hot air from the outside coming into the room can be minimized sothat the electrical energy for the air conditioner (AC) can be saved. In addition, the Company has also introduced “Lacobel” brandfor interior glass. Lacobel is an interior glass with a variety of color selection and high reflection. Paint colors used by Lacobel containno heavy metals nor chemicals that can damage the environment.

The Company has pioneered the first eco-friendly glass products in the domestic market, which are mirror glass products branded“Miralux” and “Dantalux”, copperless interior glass products that are more resistant to corrosion. These products are different fromthe existing products in the market, especially in the country. The Company expects that its environmentally friendly products cancater the trend of consumer demand for Green Products in line with Government policy that has begun to introduce Green Buildingand Green Architecture concepts in construction and property industry.

The Company in cooperation with the Green Building Council Indonesia (GBCI), an independent and non-profit institution fullycommitted to community education in applying environmental best practices and facilitate the sustainable transformation of theglobal building industry, conducts seminars and trainings for stakeholders including professional in the field of construction service,building and property industry businesses as well as community who care about the environment, on the Company's products thatare environmentally friendly in terms of raw materials, production processes and production results.

EMPLOYMENT PRACTICES

The existence of strong industrial relations between the Company and all employees is one of the key of business sustainability ofthe Company. For that reason, the Company is constantly working to ensure the rights and responsibilities of employees are inaccordance with the laws and Collective Labour Agreement (PKB) as a form of corporate policy in the field of employment.

It is undeniable that reliable Human Resources have become one of the main determinants of the Company's success to date. Managingnearly 3,000 employees is certainly a challenge for the Company. However, with a high commitment from all levels of employeeswith the philosophy of "We are in the same boat, we are AMG", the Company believes the quality of human resources can continueto be improved and contributed positively to the Company's business activities.

The Company has addressed various employment challenges in terms of fair employment opportunities by conducting the recruitmentof employees regardless of ethnicity, religion, race, class, social level. The recruitment process is conducted by holding the principleof equality, non- discriminatory, and transparent.

The Company integrates human resources strategy with business planning and organizational leadership that are backed with measuresto strengthen the Company in gaining the best employees/talents and performance-based cultureapplication, process of developing cadres of future leaders, in creating a strong engagement with employees and maintaining closeindustrial relations, in which all are embraced by a strong corporate culture.

To maintain a harmony in the fast growing environmental and organizational changes in the face of competition at the global level,the Company has strengthened its commitment to consistency and continuity of various programs implementation to improve thequality of its human resources. Leadership competency development program, from the early stage, is designed with comprehensiveand tiered considerations, ranging from basic competence mastery, managerial capability mastery and leadership with a varied rangeof development tools that include training programs, mentoring, rotation, career development, leadership coaching and feedbacksessions, and is reinforced with the Company's corporate culture content. The various processes of human resource capacitydevelopment are intended to produce leaders who are groomed from within balanced personal character, in terms of knowledge,experience and competency.

In carrying out Employment Practices, the Company always adheres to the Employment Law and its implementing regulations. Therights and obligations of the Company's employees are stipulated in the PKB between the Company and its Labor Unions. The PKBhas a time limit and is always updated by the Labor Unions and the Company and approved by the Director General of IndustrialRelations and Labor Social Security. A harmonious relationship between the Company and the Labor Unions is also improved byimplanting the principle of partnership relationships, maturity and mutual trust.

The Company in conducting its business activities, continuously complies with the applicable rules and regulations related toemployment, which are provided in its Company Rules and PKB that among others contains the provisions for not employing underage children, providing wages above the minimum wage in accordance with the minimum wage of province/city/county in everyregion of the Company's business and treating all employees equally regardless of their ethnicity, race, religion, class or gender, andphysical condition.



Every year, the Company always evaluates the level of increase in minimum wage to be adjusted to current economic conditions.Inaddition to the evaluation, the Company also provides a form of recognition to employees by giving fair promotion to good achievers.Each year, the Company routinely presents Employee Model awards to the selected employees and Monthly Incentive rewards tothe employees based on their best performance.

In addition to the monetary rewards in the form of salary, the Company's employees are also entitled to various facilities and servicesthat make their lives more prosperous and developing. All employees still get health facility for eye care, hospital inpatient andoutpatient. In addition, the Company provides pre-pension program and trainings for employees who are entering retirement age.The Company ensures that pensioner can go through smooth transition period from employee to become an entrepreneur. Pre-pension program among others are entrepreneur seminars, financial planning session and pre-pension conselling. These programscan give life skills to ensure the well-being of employees after retirement.

OCCUPATIONAL HEALTH AND SAFETY

The Company is highly committed and aware of the importance of complying with the applicable Laws and Regulations includingthose which related to occupational safety, health and environmental protection.The Company has in place the Basic Manual ofOccupational Health and Safety that applies to all employees and management of the Company. The manual is intended to makeevery employee understand and practice the basic rules of occupational safety and health properly in oder to prevent occupationalinjury. The Company also has in place a slogan on Occupational Safety and Health Practice (K3), namely: "No production/activitieswithout the assurance of occupational health and safety".

In the meantime the Company's K3 policy is as follows:

1. We will improve our Risk Assessment ability to promote the effective use of SMK3,2. We will continue the safety activity tradition by not making it a routine activity that is repetitive,3. Managers will treat their subordinates as family members and ensure their occupational safety. We will develop basic safety

principles of equipment and continuously improve the working environment,4. We will carry out K3 activities as part of production activities by providing necessary support for line management,5. We will comply with all prevailing legislation and requirements related to K3,6. We will mobilize proactive participation of employees in all K3 activities through open, honest and fair interaction and communication

in the workplace.

High commitment is also applied by the Company in its new factory construction in Cikampek, by continuously analyzing the riskof accidents which may occur during the project work in progress and continually carrying out "daily patrol" either a 5-R patrol or asafety patrol. Therefore, throughout 2015, there was no significant occupational accident in the construction project.

To support the policy, in 2015, the Company conducted several activities, among others:

"Safety First" Campaign

“Safety is Basic” has become a culture in the Company. In carrying out its activities, the Company always puts safety and securityin the first place, meaning that there will be no production if there is no guarantee of security and safety. To increase employeeawareness of the importance of workplace safety, the Company constantly makes reminders on the importance of safety in every

Emergency Condition Simulation

In 2015, the Company conducted a series of simulations to anticipate the occurrence of natural disasters and emergencies, such asfloods, earthquakes, leaks of Heavy Oil, SO2 and fire. The purpose of the simulation is to train each employee in the face of naturaldisasters and emergencies, as well as to evaluate the facilities and communication systems in emergency situations.

The simulations were carried out by making several scenarios such as a fire in the Company's building, how is the system evacuationthrough emergency doors toward the meeting point, how much time taken to evacuate all employees in the work site to the meetingpoint. This simulation is needed so that when disaster really strikes, it is expected that all employees already have enough knowledgeto protect themselves and their environment.

Safety Patrol

To ensure safe conditions in the work environment and that every employee carry out security and safety procedures, every day,heads of all sections are required to conduct patrol. In addition, Safety & 5S Patrol must also be conducted by the management eachmonth at different locations. Furthermore, a report should be made and evaluation of the findings in the field should be followedup and coordinated with HSE section and related sections.

Health For Employees

To actualize its concern for the health of all employees, the Company actively takes preventive measures against things canbe detrimental to the health of employees. The Company has been cooperating with several hospitals to provide counselingand seminars on a regular basis about the diseases that often occur in the community. Every year, the Company also regularlyconducts health checks for all employees such as X-rays, urine test, blood test, blood pressure test and others.The Companyalso provides Polyclinic along with doctors and paramedics at each location of its factory. The facility is intended to providethe employee with a quick services either in normal or emergency conditions.

To maintain health and fitness, once a week the Company's employees play sports, especially badminton, tennis courts, indoor soccerand morning gymnastics guided by aerobic instructors. The Company also has registered its employeesin BPJS Ketenagakerjaan which provides among others accident insurance, death insurance and old age insurance and BPJSKesehatan.

SOCIAL DEVELOPMENT AND COMMUNITY EMPOWERMENT

Empowering individuals and community groups in the communities by providing skills is one of the Company's ways to develop andempower communities to become more self-sufficient. Therefore, the Company has been doing community development activities,which include:

Scholarship Program

One of the Company's active roles to improve quality and educational facilities for the community is by providing direct assistanceto the world of education. The assistance is given in the form of scholarships and school equipment for early childhood and elementaryschool levels around the Company's factories. In addition, since 1985 to date,every month the Company helps the distribution of scholarships granted by theYayasan Asahi Glass Indonesia (YAGI) for the senior high school level (SMKN 56Jakarta) and 3 (three) universities in Indonesia, namely Universitas Indonesia,Institut Teknologi Bandung and Institut Teknologi Surabaya.

YAGI is a non-profit foundation which purpose is providing scholarships for thebest and selected college students. YAGI was founded on July 5, 1983 by AsahiGlass Co., Ltd., Japan and PT Asahimas Flat Glass Tbk.

In 2015, YAGI provided scholarships to 40 students of SMKN 56 Jakarta and 54college students from Universitas Indonesia, Institut Teknologi Bandung andInstitut Teknologi Surabaya. The amount of scholarship granted in 2015 wasRp220 million.



activity. The appeal of safety is delivered through bulletin boards, running text, morning and afternoon meetings, mandatory trainingsfor all employees through Safety Simulator and other means of communication. Before commencing work, the Company's employeesalways do "Kiken Yochi" (hazard prediction) and Tool Box Meeting (TBM) by carrying out an examination of the work environment.



activity. The appeal of safety is delivered through bulletin boards, running text, morning and afternoon meetings, mandatory trainingsfor all employees through Safety Simulator and other means of communication. Before commencing work, the Company's employeesalways do "Kiken Yochi" (hazard prediction) and Tool Box Meeting (TBM) by carrying out an examination of the work environment.

Freshwater Fish Farming

In 2015, the Company continued to develop freshwater fish farming program especially freshwater fish, for example catfish, that isrun by the community surrounding the Company's factory in Sidoarjo. Currently, they have developed the cultivation of otherfreshwater fish such as red tilapia and carp. The Company sees a quite good potential for the community to farm catfish and otherfreshwater fish that can continuously grow. For the freshwater fish farming, the assistance provided by the Company is in the formof land clearing with leveling, irrigation, making of catfish ponds and feed warehouses, training and maintenance, providing of seedlingand setting the marketing targets. The Company in cooperation with the Food Security Agency of Sidoarjo Regency periodicallyprovides guidance for the cultivation for the farmers. The Company expects that community can take advantage of unused lands inthe environment so that there will be new freshwater fish ponds which would increase the community's incomes.

Brick Making

Property development growth in most of Cikampek areas makes the need for building materials increase. The good opportunity iscaptured by some of the residents in the Purwasari Village to develop a brick-making business. The Company provides assistance forplace renovation and electric machines for the brick-making. The Company also provides a simple bookkeeping training to facilitatethe administration of their business activities recording.

The Company expects this brick-making can continue to thrive in in the community so that it can absorb more labors and the resultcan be further improved, which would certainly impact on the community's income.

Mushroom Cultivation

Along with increased insight and awareness of healthy food, the Company has been cooperating with a group of Oyster Mushroomfarmers in the Tamelang village, Cikampek. Oyster Mushroom is one of well-known fungus people like to eat and cultivated by farmers.There is no doubt that prospect of mushroom cultivation is very good, even up to date, local markets still do not have enough stockof oyster mushroom. Seeing the potential market and interest of the community surrounding its factory in Cikampek, the Companyhelps local communities to undertake oyster mushroom cultivation. The assistance provided by the Company is in arranging a buildingas a place for oyster mushroom cultivation. The Company also provides the materials used for oyster mushroom breeding process.As a result, oyster mushroom harvest has been already underway and the Company also notices that the yields are quite good. TheCompany expects that there will be new oyster mushroom nursery-breeding for the community, especially around the Company'sfactory so as to assist government programs in terms of alleviation of unemployment as well as increase local community's incomes.

Duck Farming

At present, duck is one of the favorite foods enthused by the community, where its market share is expected to increase. Seeing thisbusiness opportunity, the Company in cooperation with the community of Kalihurip Village, Cikampek, has built a duck breeding farm.The Company contributes to this activity by making duck cages completed with the fittings, duck seed, food and harvest. It takes 90-100 days in this duck enlargement process, from seed to harvest. The result already obtained from this duck farming has been quitesatisfactory, although there are still shortcomings and problems, these do not deter the duck breeders. The Company expects thatthe duck breeding can continue to thrive in the community so that it can absorb more labors and the result can be further improved,which would certainly impact on the community's income.

Cake Making Training

The Company's Sidoarjo factory in collaboration with members of Family Welfare Programme (PKK) around the factory organized acake making training program. The residents were taught how to make cakes with good quality, taste, appearance and cleanlinessas well as to calculate the basic price. This program was expected to increase local community's income.



Handover and longan tree-planting by the management of the Company to the community in Clering Village,Donorojo District, Jepara - Central Java

Longan Tree Planting

In line with the Company's CSR policy which is "Living in harmony with the surrounding community and Preserving the environment"on December 11, 2015, the Company in cooperation with the supplier of one of the raw materials and the village government ofClering, Donorojo, Jepara, Central Java held a crystal longan tree planting.

This event was attended by the management of the Company, suppliers, community leaders, Village Chiefs and farmers communityin Jepara. In this CSR activities, training was given on the practice of good longan tree planting. No fewer than a hundred peoplefollowed the event with great enthusiasm. People really appreciate the contribution of the Company to their village, this shows agood relationship between the Company and the communities in the mining of raw materials.



OTHER SOCIAL ASSISTANCES

Social assistance provided by the Company not only in the form of empowerment, but also many that had been conducted by theCompany to the community, surrounding its operational areas or the community at large. This social assistance includes, amongothers glass donation for places of worship, assistance for religious activities such as Hari Raya, assistance for orphans, assistancefor independence day activities, holding of routine blood donors and others.

THE COMPANY's PRODUCT LIABILITY

With the issue of Law No. 8 of 1999 on Consumer Protection provides certainty to consumers on the quality, quantity and safety ofgoods and/ or services acquired on the market so the consumers feel comfortable and safe in using the good or services obtained.The Company as glass manufacturer pays a great attention to the quality standards of its products. The Company strives hard tocontrol the quality of its products in order to meet existing quality standards in order to avoid losses that must be borne by theconsumers both in terms of health and safety.

To maintain consistency of quality standards of its products, the Company has obtained ISO 9001: 2008, an international standardused to establish product and service quality policy and target in order to adjust the quality of these products with customerrequirements or other requirements, and with the quality standards established by the Company supported by a Laboratory equippedwith ISO 17025 certification. The Company provides product information to consumers appropriately which include information onthree matters, i.e:

1. Technical SupportProvide information about the technical data of the Company's glass and its applications on buildings.

2. Product InformationProvide information about the types of glass produced by the Company.

3. Product AvailabilityProvide information on product availability and recommend contacts of distributors/dealers.

CUSTOMER COMPLAINTS FACILITY, NUMBER AND HANDLING

To handle complaints and inquiries from consumers regarding the Company's products, the Company provides facilities consistingof electronic mail (marketing email), internet-based IT Claim system and a website that can be used by consumers. The Companyalso provides Direct Line Marketing to consumers, so that they can interact directly to find out the Company's products, in terms oftechnical data, distributor info and other information. With the direct interaction, the Company seeks to strengthen the relationshipwith consumers and customers so that the Company can directly respond to consumers' aspirations and expectations. The serviceaims to increase customer satisfaction with the Company's products.

With these facilities, the Company can obtain information from consumers about complaints, questions, suggestions/feedback andtheir satisfaction level with the products and services provided by the Company.


STATEMENT OFTHE BOARD OF COMMISSIONERS AND THE BOARD OF DIRECTORS

ON THE RESPONSIBILITY FORTHE 2015 ANNUAL REPORT

We, the undersigned, declare that all information in the 2015 Annual Report ofPT Asahimas Flat Glass Tbk has been presented in a complete and correct manner and we are fully responsible for

the accuracy of the content of this Annual Report.

This statement is made truthfully

Jakarta, 1 April 2016.

TAN PEI LINGPresident Commissioner

MASAHIRO TAKEDAVice President Commissioner

TJAHJANA SETIADHICommissioner

TAKEO TAKEICommissioner

BENYAMIN SUBRATAIndependent Commissioner

HIDEYA TANAKAIndependent Commissioner

BOARD OF COMMISSIONERS

BOARD OF DIRECTORS

MAMPEI CHIYODAPresident Director

E. DAVID SATRIA SOETEDJAVice President Director

NAOMASA TANIGUCHIDirector

MITSUHIRO YOSHIKADODirector

SADAYOSHI SHINOTSUKADirector

MOHAMAD AMIENDirector

TATSUO SUGIYAMADirector

RUSLI PRANADIIndependent Director

PRASETYO AJI Director

TJIO FERRY SUSANTODirector

MICHITAKA GOTODirector


PT ASAHIMAS FLAT GLASS Tbk

ISI/CONTENTS

SURAT PERNYATAAN TANGGUNG JAWAB DIREKSI/DIRECTORS’ STATEMENT OF RESPONSIBILITY

LAPORAN KEUANGAN TAHUN YANG BERAKHIR PADA 31 DESEMBER 2015 DAN 2014/

FINANCIAL STATEMENTS YEARS ENDED 31 DECEMBER 2015 AND 2014: ...... Halaman/Page

LAPORAN POSISI KEUANGAN/STATEMENT OF FINANCIAL POSITION ................................ 1 - 2

LAPORAN LABA RUGI DAN PENGHASILAN KOMPREHENSIF LAIN/

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME .................... 3

LAPORAN PERUBAHAN EKUITAS/STATEMENT OF CHANGES IN EQUITY .......................... 4

LAPORAN ARUS KAS/STATEMENT OF CASH FLOWS ............................................................... 5

CATATAN ATAS LAPORAN KEUANGAN/NOTES TO THE FINANCIAL STATEMENTS ......... 6 - 46

LAPORAN AUDITOR INDEPENDEN/INDEPENDENT AUDITORS’ REPORT


1

PT ASAHIMAS FLAT GLASS Tbk LAPORAN POSISI KEUANGAN/STATEMENT OF FINANCIAL POSITION

31 DESEMBER 2015, 31 DESEMBER 2014, DAN 1 JANUARI 2014/ 31 DECEMBER 2015, 31 DECEMBER 2014 AND 1 JANUARY 2014

Catatan/ 31 Desember/31 December 1 Januari/ Dalam jutaan Rupiah Notes 2015 2014* 1 January 2014* In millions of Rupiah ASET ASSETS ASET LANCAR CURRENT ASSETS Kas dan setara kas 4 931.761 1.107.411 861.619 Cash and cash equivalents Piutang usaha 5 353.443 354.306 378.342 Trade receivables Piutang lainnya 6 51.485 29.511 22.104 Other receivables Persediaan 7 861.194 745.048 689.093 Inventories Pajak dibayar dimuka 21a 18.614 12.691 4.686 Prepaid taxes Pembayaran dimuka lainnya 8 14.684 14.761 15.661 Other prepayments Tanah yang dimiliki untuk dijual 10 - - 8.611 Land held for sale JUMLAH ASET LANCAR 2.231.181 2.263.728 1.980.116 TOTAL CURRENT ASSETS ASET TIDAK LANCAR NON-CURRENT ASSETS Aset pajak tangguhan, neto 21g 75.378 79.954 72.445 Deferred tax assets, net Investasi dengan metode ekuitas 1e 1.575 1.575 1.575 Equity-accounted investment Pajak yang dapat dikembalikan 21f 34.407 - - Refundable taxes Aset takberwujud, neto 6.188 6.182 1.415 Intangible asset, net Aset tetap, neto 10 1.822.896 1.530.836 1.478.147 Fixed assets, net Aset tidak lancar lainnya 9 98.650 63.850 27.986 Other non-current assets JUMLAH ASET TIDAK LANCAR 2.039.094 1.682.397 1.581.568 TOTAL NON-CURRENT ASSETS JUMLAH ASET 4.270.275 3.946.125 3.561.684 TOTAL ASSETS

*Disajikan kembali (lihat Catatan 29) *As restated (see Note 29) Lihat Catatan atas Laporan Keuangan yang merupakan bagian tak terpisahkan dari laporan keuangan ini.

See Notes to the Financial Statements, which form an integral part of these financial statements.


2

PT ASAHIMAS FLAT GLASS Tbk LAPORAN POSISI KEUANGAN (Lanjutan)/STATEMENT OF FINANCIAL POSITION (Continued)

31 DESEMBER 2015, 31 DESEMBER 2014, DAN 1 JANUARI 2014/ 31 DECEMBER 2015, 31 DECEMBER 2014 AND 1 JANUARY 2014

Catatan/ 31 Desember/31 December 1 Januari/ Dalam jutaan Rupiah Notes 2015 2014* 1 January 2014* In millions of Rupiah LIABILITAS DAN EKUITAS LIABILITIES AND EQUITY LIABILITAS JANGKA PENDEK CURRENT LIABILITIES Utang usaha 11 277.988 245.546 281.500 Trade payables Utang pajak penghasilan 21b 9.022 15.190 35.657 Income tax payable Utang pajak lainnya 21c 9.637 10.265 5.991 Other taxes payable Beban akrual 12 138.521 101.106 93.349 Accrued expenses Liabilitas jangka pendek lainnya 13 44.208 26.131 57.463 Other current liabilities JUMLAH LIABILITAS JANGKA

PENDEK

479.376 398.238 473.960

TOTAL CURRENT LIABILITIES LIABILITAS JANGKA PANJANG NON-CURRENT LIABILITY Liabilitas imbalan kerja 14 400.676 446.447 393.871 Employee benefits obligation JUMLAH LIABILITAS 880.052 844.685 867.831 TOTAL LIABILITIES EKUITAS EQUITY Modal saham, nilai nominal Rp 500

per saham: Modal dasar:

600.000.000 saham Modal ditempatkan dan disetor

penuh: 434.000.000 saham 15 217.000 217.000

217.000

Share capital, par value of Rp 500 per share:

Authorized capital: 600,000,000 shares

Issued and paid-up capital: 434,000,000 shares

Tambahan modal disetor 16 165.083 165.083 165.083 Additional paid-in capital Saldo laba:

Dicadangkan 24 79.000 74.500

71.000 Retained earnings:

Appropriated Tidak dicadangkan 2.929.140 2.644.857 2.240.770 Unappropriated

JUMLAH EKUITAS 3.390.223 3.101.440 2.693.853 TOTAL EQUITY JUMLAH LIABILITAS DAN

EKUITAS 4.270.275 3.946.125

3.561.684 TOTAL LIABILITIES AND

EQUITY




3

PT ASAHIMAS FLAT GLASS Tbk LAPORAN LABA RUGI DAN PENGHASILAN KOMPREHENSIF LAIN/

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME TAHUN YANG BERAKHIR PADA 31 DESEMBER 2015 DAN 2014/YEARS ENDED 31 DECEMBER 2015 AND 2014

Catatan/

Tahun yang berakhir pada 31 Desember/Year ended 31

December

Dalam jutaan Rupiah Notes 2015 2014* In millions of Rupiah Penjualan neto 17 3.665.989) 3.672.186) Net sales Beban pokok penjualan 18 (2.868.674) (2.760.739) Cost of sales LABA BRUTO 797.315) 911.447) GROSS PROFIT Beban lainnya (8.070) (1.819) Other expense Beban penjualan 19 (356.675) (338.192) Selling expenses Beban umum dan administrasi 20 (51.637) (42.892) General and administrative expenses Keuntungan selisih kurs, bersih 47.558) 12.950) Foreign exchange gain, net Penghasilan lainnya 201) 21.500) Other income

(368.623) (348.453) LABA USAHA 428.692) ) 562.994) OPERATING PROFIT Pendapatan keuangan 35.571) 42.169) Finance income LABA SEBELUM PAJAK 464.263) 605.163) PROFIT BEFORE TAX (Beban) manfaat pajak penghasilan: 21d Income tax (expense) benefit:

Kini (112.393) (141.238) Current Tangguhan (10.524) 227) Deferred

(122.917) (141.011) LABA 341.346) 464.152) PROFIT RUGI KOMPREHENSIF LAIN OTHER COMPREHENSIVE LOSS

Pengukuran kembali liabilitas imbalan pasti

(23.791) (29.127)

Remeasurements of defined benefit liability

Pajak atas rugi komprehensif lain 5.948) 7.282) Tax on other comprehensive loss JUMLAH RUGI KOMPREHENSIF

LAIN

(17.843) (21.845) TOTAL OTHER COMPREHENSIVE

LOSS JUMLAH PENGHASILAN

KOMPREHENSIF

323.503)

442.307) TOTAL COMPREHENSIVE INCOME

Laba per saham (dalam Rupiah penuh) 22 786) 1.069) Earnings per share (in whole Rupiah)




4

PT ASAHIMAS FLAT GLASS Tbk LAPORAN PERUBAHAN EKUITAS/STATEMENT OF CHANGES IN EQUITY

TAHUN YANG BERAKHIR PADA 31 DESEMBER 2015 DAN 2014/ YEARS ENDED 31 DECEMBER 2015 AND 2014

Saldo laba/Retained earnings Jumlah

Catatan/ Modal saham/

Share Tambahan modal disetor/Additional Dicadangkan/

Tidak dicadangkan/

ekuitas/ Total

Dalam jutaan Rupiah Notes capital paid-in capital Appropriated Unappropriated equity In millions of Rupiah Saldo 31 Desember 2013,

seperti dilaporkan sebelumnya 217.000 165.083 71.000 2.307.644) 2.760.727)

Balance as of 31 December 2013, as

previously reported Dampak dari perubahan

kebijakan akuntansi 29 - - - (66.874) (66.874) Impact of change in accounting policy

Saldo 31 Desember 2013,

setelah disajikan kembali 217.000 165.083 71.000 2.240.770) 2.693.853) Restated balance as of

31 December 2013 Penghasilan komprehensif -

2014 Comprehensive income -

2014 Laba (disajikan kembali) - - - 464.152) 464.152) Profit (as restated) Rugi komprehensif lain

(disajikan kembali) - - - (21.845) (21.845) Other comprehensive

loss (as restated)

Dividen tunai 23 - - - (34.720) (34.720) Cash dividends

Pencadangan wajib atas saldo laba 24 - - 3.500 (3.500) -)

Appropriation of retained earnings for statutory

reserves

Saldo 31 Desember 2014, setelah disajikan kembali 217.000 165.083 74.500 2.644.857) 3.101.440)

Restated balance as of 31 December 2014

Penghasilan komprehensif -

2015 Comprehensive income -

2015 Laba - - - 341.346) 341.346) Profit

Rugi komprehensif lain - - - (17.843) (17.843) Other comprehensive

loss

Dividen tunai 23 - - - (34.720) (34.720) Cash dividends

Pencadangan wajib atas saldo laba 24 - - 4.500 (4.500) -)

Appropriation of retained earnings for statutory

reserves

Saldo 31 Desember 2015 217.000 165.083 79.000 2.929.140) 3.390.223) Balance as of

31 December 2015

Lihat Catatan atas Laporan Keuangan yang merupakan bagian tak terpisahkan dari laporan keuangan ini.



5

PT ASAHIMAS FLAT GLASS Tbk LAPORAN ARUS KAS/STATEMENT OF CASH FLOWS


Catatan/

Tahun yang berakhir pada 31 Desember/

Year ended 31 December

Dalam jutaan Rupiah Notes 2015 2014 In millions of Rupiah ARUS KAS DARI AKTIVITAS OPERASI: CASH FLOWS FROM OPERATING ACTIVITIES: Penerimaan kas dari pelanggan 3.666.690) 3.694.422) Cash received from customers Pembayaran kas kepada pemasok (2.442.161) (2.373.919) Cash paid to suppliers Pembayaran kas untuk kompensasi karyawan (446.251) (451.008) Cash paid for employees’ compensation Pembayaran kas untuk aktivitas operasi lainnya (296.902) (184.581) Cash paid for other operating activities

481.376) 684.914) Penerimaan bunga 38.429) 41.041) Interest received Pembayaran pajak penghasilan (152.968) (161.705) Income tax paid Kas neto dari aktivitas operasi 366.837) 564.250) Net cash from operating activities ARUS KAS DARI AKTIVITAS INVESTASI: CASH FLOWS FROM INVESTING ACTIVITIES: Perolehan aset tetap 10 (531.215) (312.259) Acquisition of fixed assets Perolehan aset takberwujud (989) (5.092) Acquisition of intangible assets Hasil penjualan aset tetap 165) 828) Proceeds from sale of fixed assets Hasil penjualan tanah yang dimiliki untuk dijual 10 -) 29.110) Proceeds from sale of land held for sale Kas neto yang digunakan untuk aktivitas

investasi

(532.039) (287.413) Net cash used in investing activities ARUS KAS DARI AKTIVITAS PENDANAAN: CASH FLOWS FROM FINANCING ACTIVITY: Pembayaran dividen kepada pemegang saham/Kas

neto yang digunakan untuk aktivitas pendanaan 23 (34.720) (34.720)

Dividends paid to shareholders/Net cash used in financing activity

Pengaruh dari pergerakan nilai tukar atas kas

dan setara kas yang ada 24.272) 3.675) Effect of currency exchange fluctuations on cash

and cash equivalents held (Penurunan) kenaikan neto kas dan setara kas (175.650) 245.792) Net (decrease) increase in cash and cash equivalents Kas dan setara kas, awal tahun 1.107.411) 861.619) Cash and cash equivalents, beginning of year Kas dan setara kas, akhir tahun 931.761) 1.107.411) Cash and cash equivalents, end of year

Lihat Catatan atas Laporan Keuangan yang merupakan bagian tak terpisahkan dari laporan keuangan ini.


PT ASAHIMAS FLAT GLASS Tbk CATATAN ATAS LAPORAN KEUANGAN/NOTES TO THE FINANCIAL STATEMENTS



6

1. UMUM 1. GENERAL

a....Pendirian Perseroan a.…..The Company’s establishment Perseroan didirikan dalam kerangka penanaman modal asing berdasarkan Undang-Undang No. 1 tahun 1967 jo. Undang-Undang No. 11 tahun 1970, dengan akta notaris Koerniatini Karim tanggal 7 Oktober 1971 No.)4, diubah dengan akta notaris yang sama tanggal 6)Januari 1972 No. 9; akta-akta ini disetujui oleh Menteri Kehakiman dengan No. J.A.5/5/19 tanggal 17)Januari 1972. Perubahan nama Perseroan dari PT)Asahimas Flat Glass Co., Ltd. menjadi PT)Asahimas Flat Glass Tbk dilakukan dengan akta notaris Amrul Partomuan Pohan, S.H., LL.M tanggal 26 Juni 1998 No. 73; akta ini disetujui oleh Menteri Kehakiman dengan No. C2-12065 HT.01.04.Th.1998 tanggal 25 Agustus 1998 dan diumumkan dalam Tambahan No.)6509 (untuk menyesuaikan dengan Undang-Undang Perseroan Terbatas No. 1 tahun 1995) dan Tambahan No. 6510 (untuk perubahan nama Perseroan) pada Berita Negara No. 94 tanggal 24)Nopember 1998.

The Company was established within the foreign capital investment framework of Law No. 1 of 1967 and Law No. 11 of 1970, by deed of notary public Koerniatini Karim dated 7 October 1971 No. 4, as amended by deed of the same notary dated 6 January 1972 No. 9; these deeds were approved by the Minister of Justice under No. J.A.5/5/19 dated 17 January 1972. The Company’s name changed from PT Asahimas Flat Glass Co., Ltd. to PT Asahimas Flat Glass Tbk by deed of notary public Amrul Partomuan Pohan, S.H., LL.M dated 26 June 1998 No..73; this deed was approved by the Minister of Justice under No. C2-12065 HT.01.04.Th.1998, on 25.August 1998, as published in Supplement No. 6509 (to comply with the Corporate Law No. 1 of 1995) and Supplement No..6510 (concerning the change of the Company’s name) to State Gazette No. 94 on 24 November 1998.

Anggaran dasar Perseroan telah mengalami beberapa kali perubahan. Perubahan terakhir dengan akta notaris Dr. lrawan Soerodjo, SH, MSi tanggal 5 Juni 2015 No. 45 mengenai perubahan dan pernyataan kembali Anggaran Dasar Perseroan, termasuk menyesuaikan dengan peraturan Otoritas Jasa Keuangan tentang Pokok-Pokok Anggaran Dasar Perseroan yang melakukan Penawaran Umum Efek Bersifat Ekuitas dan Perusahaan Publik; akta ini telah diberitahukan kepada Menteri Hukum dan Hak Asasi Manusia dengan No. AHU-AH.01.03-0946820, tanggal 30 Juni 2015. Pengumuman pada Berita Negara sedang dalam proses.

Several amendments have been made to the Company’s Articles of Association. The latest amendment was effected by deed of notary public Dr. 1rawan Soerodjo, SH, MSi. dated 5 June 20I5 No. 45 regarding changes and restatement the Company’s Articles of Association, including to comply with Financial Services Agency Regulation pertaining to the Articles of Association of Companies conducting Public Offerings and Public Companies; this deed has been filed with the Minister of Law and Human Rights under No AHU-AH.01.03-0946820, on 30 June 2015. Publication in the supplement to State Gazette is still on process.

Perseroan bergerak dalam bidang industri kaca, ekspor dan impor, dan jasa sertifikasi mutu berbagai jenis produk kaca serta kegiatan lain yang berkaitan dengan usaha tersebut. Operasi komersial Perseroan dimulai pada bulan April 1973.

The Company is engaged in the glass industry, export and import, quality certification service for glass products and other activities related to the aforementioned businesses. The Company’s commercial operations commenced in April 1973.

Perseroan berdomisili di Indonesia dengan Kantor Pusat di Jl. Ancol IX/5, Ancol Barat, Jakarta Utara. Pabrik Perseroan berlokasi di Kawasan Industri Ancol, Jakarta Utara; di Bukit Indah Industrial Park, Cikampek; dan di Tanjung Sari, Sidoarjo, Jawa Timur.

The Company is domiciled in Indonesia and its Head Office is at Jl. Ancol IX/5, West Ancol, North Jakarta. The Company’s factories are located at Kawasan Industri Ancol, North Jakarta; at Bukit Indah Industrial Park, Cikampek; and at Tanjung Sari, Sidoarjo, East Java.

PT ASAHIMAS FLAT GLASS Tbk CATATAN ATAS LAPORAN KEUANGAN (Lanjutan)/NOTES TO THE FINANCIAL STATEMENTS (Continued)



7

1. UMUM (Lanjutan) 1. GENERAL (Continued)

b....Penawaran umum efek Perseroan b.….The Company’s public offering

Sesuai dengan surat Ketua Badan Pengawas Pasar Modal (“Bapepam”), No. S-1323/PM/1995 tanggal 18.Oktober 1995 mengenai “Pemberitahuan Efektifnya Pernyataan Pendaftaran”, pada tahun 2000 Perseroan melakukan penawaran umum kepada masyarakat melalui pasar modal di PT Bursa Efek Jakarta (selanjutnya berubah nama menjadi PT Bursa Efek Indonesia), sejumlah 86.000.000 saham dengan nilai nominal Rp 500 per saham. Sejak tanggal 18 Desember 2000, saham Perseroan yang beredar telah tercatat.

In accordance with the letter from the Chairman of the Capital Market Supervisory Agency (“Bapepam”), No..S-1323/PM/1995 dated 18 October 1995 titled “Notification that the Registration Statement becomes Effective”, in 2000 the Company had a public offering through the capital market at PT Bursa Efek Jakarta (subsequently named PT Bursa Efek Indonesia), of 86,000,000 shares with a par value of Rp 500 per share. Since 18 December 2000, the Company’s issued shares have been listed.

c. Informasi mengenai karyawan, dewan komisaris, direksi dan komite audit

c.00, Information about employees, boards of commissioners, directors and the audit committee

Susunan dewan komisaris, direksi perseroan dan komite audit pada tanggal 31 Desember 2015 dan 2014 adalah sebagai berikut:

The members of the Company’s boards of commissioners, directors and audit committee as of 31 December 2015 and 2014 were as follows:

2015 2014 Dewan Komisaris Board of Commissioners Presiden Komisaris Tn./Mr. Tan Pei Ling Tn./Mr. Tan Pei Ling President Commissioner Wakil Presiden

Komisaris Tn./Mr. Masahiro Takeda Tn./Mr. Kimikazu Ichikawa Vice President

Commissioner Komisaris-komisaris Tn./Mr. Tjahjana Setiadhi Tn./Mr. Andi Purnomo Commissioners Tn./Mr. Takeo Takei Tn./Mr. Takeo Takei Komisaris Independen Tn./Mr. Benyamin Subrata Tn./Mr. Benyamin Subrata Independent Commissioners Tn./Mr. Hideya Tanaka Tn./Mr. Hideya Tanaka Direksi Directors Presiden Direktur Tn./Mr. Mampei Chiyoda Tn./Mr. Mampei Chiyoda President Director Wakil Presiden Direktur Tn./Mr. Emanuel David Satria

Soetedja Tn./Mr. Tjahjana Setiadhi Vice President Director

Direktur-direktur Tn./Mr. Naomasa Taniguchi Tn./Mr. Naomasa Taniguchi Directors Tn./Mr. Mitsuhiro Yoshikado Tn./Mr. Mitsuhiro Yoshikado Tn./Mr. Sadayoshi Shinotsuka Tn./Mr. Yoshiki Inoue

Tn./Mr. Prasetyo Aji Tn./Mr. Prasetyo Aji Tn./Mr. Tjio Ferry Susanto Tn./Mr. Tjio Ferry Susanto Tn./Mr. Mohamad Amien Tn./Mr. Emanuel David

Satria Soetedja

Tn./Mr. Michitaka Goto Tn./Mr. Yasushi Kawamoto Tn./Mr. Tatsuo Sugiyama Tn./Mr. Tatsuo Sugiyama

Direktur Independen Tn./Mr. Rusli Pranadi Tn./Mr. Rusli Pranadi Independent Director




8

1. UMUM (Lanjutan) 1. GENERAL (Continued)

c. Informasi mengenai karyawan, dewan komisaris, direksi dan komite audit (Lanjutan)

c. Information about employees, boards of commissioners, directors and the audit committee (Continued)

2015 2014 Komite Audit Audit Committee Ketua Komite Audit Tn./Mr. Benyamin Subrata Tn./Mr. Benyamin Subrata Audit Committee Chairman Anggota Komite Audit Tn./Mr. Dr. H. A. Partomuan

Pohan, SH. LL.M Tn./Mr. Dr. H. A. Partomuan

Pohan, SH. LL.M Audit Committee members

Tn./Mr. Ir. Susanto Tn./Mr. Ir. Susanto Tn./Mr. Drs. Hariawan Pribadi Tn./Mr. Drs. Hariawan Pribadi

Per 31 Desember 2015 dan 2014, Perseroan mempekerjakan masing-masing 2.789 dan 2.805 karyawan (tidak diaudit).

As at 31 December 2015 and 2014, the Company had 2,789 and 2,805 employees (unaudited), respectively.

d. Perseroan merupakan bagian dari kelompok usaha Asahi Glass Co., Ltd., Jepang (“AGC”) yang memiliki entitas anak dan afiliasi di seluruh dunia, dan PT Rodamas yang memiliki entitas anak dan afiliasi di beberapa negara.

d. The Company is part of Asahi Glass Co., Ltd., Japan (“AGC”) that has subsidiaries and affiliates throughout the world, and PT Rodamas that has subsidiaries and affiliates in certain countries.

e. Perseroan memiliki satu entitas anak, PT Auto Glass Indonesia (“AGI”), dengan persentase kepemilikan sebesar 99,95%. AGI berdomisili di Indonesia, bergerak dalam bidang jasa perbaikan dan pemasangan kaca otomotif. Operasi komersialnya dimulai sejak April 2001. Per 31 Desember 2015, jumlah aset (sebelum eliminasi) AGI adalah Rp 6.111 juta (tidak diaudit).

e. The Company has one subsidiary, PT Auto Glass Indonesia (“AGI”), with the percentage of ownership of 99.95%. AGI is domiciled in Indonesia, engaged in automotive glass repair and installation services. Its commercial operations started in April 2001. As of 31 December 2015, total assets (before elimination) AGI amounted to Rp 6,111 million (unaudited).

Jumlah aset, liabilitas, dan hasil operasi AGI dianggap tidak material terhadap laporan keuangan Perseroan. Karenanya, AGI diperlakukan sebagai investasi dengan metode ekuitas dan tidak dikonsolidasi.

AGI’s total assets, liabilities, and results of operations are considered not material to the Company’s financial statements. Therefore, AGI is accounted for as an equity-accounted investment and is not consolidated.

f. Laporan keuangan telah disetujui untuk diterbitkan oleh Direksi pada tanggal 29 Maret 2016.

f. The financial statements were approved for issuance by the Directors on 29 March 2016.

2. DASAR PENYUSUNAN 2. BASIS OF PREPARATION

a. Pernyataan kepatuhan a. Statement of compliance

Laporan keuangan Perseroan telah disusun sesuai dengan Standar Akuntansi Keuangan di Indonesia (“SAK”) dan peraturan Bapepam-LK No. VIII.G.7 “Pedoman Penyajian Laporan Keuangan” sebagaimana diubah oleh Keputusan No. KEP-347/BL/2012 “Perubahan atas peraturan No. VIII.G.7”.

The Company’s financial statements have been prepared in accordance with Indonesian Financial Accounting Standards (“SAK”) and Bapepam LK’s regulation No. VIII.G.7 “Guidelines for the Preparation of Financial Statements” as amended by Decree No. KEP-347/BL/2012 “Amendment to regulation No. VIII.G.7”.




9

2. DASAR PENYUSUNAN (Lanjutan) 2. BASIS OF PREPARATION (Continued)

b. Dasar pengukuran b. Basis of measurement

Laporan keuangan disusun atas dasar akrual dengan menggunakan konsep nilai historis, kecuali ketika standar akuntansinya mensyaratkan pengukuran pada nilai wajar.

The financial statements are prepared on the accrual basis using the historical cost concept, except where the accounting standards require fair value measurement.

c. Laporan arus kas c. Statement of cash flows

Laporan arus kas menyajikan perubahan dalam kas dan setara kas dari aktivitas operasi, investasi, dan pendanaan, dan disusun dengan metode langsung (direct method).

The statement of cash flows presents the changes in cash and cash equivalents from operating, investing, and financing activities, and is prepared using the direct method.

d. Mata uang fungsional dan penyajian d. Functional and presentation currency

Laporan keuangan disajikan dalam Rupiah, yang merupakan mata uang fungsional Perseroan.

The financial statements are presented in Rupiah, which is the Company’s functional currency.

e. Penggunaan pertimbangan, estimasi dan asumsi e. Use of judgments, estimates and assumptions

Penyusunan laporan keuangan Perseroan mengharuskan manajemen untuk membuat pertimbangan, estimasi dan asumsi yang mempengaruhi penerapan kebijakan akuntansi serta jumlah aset, liabilitas, pendapatan dan beban yang dilaporkan. Hasil aktual dapat berbeda dari nilai-nilai estimasi tersebut.

The preparation of the Company’s financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from those estimated amounts.

Estimasi dan asumsi dasarnya ditelaah secara berkesinambungan. Revisi atas estimasi diakui secara prospektif.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognized prospectively.

Informasi mengenai ketidakpastian asumsi dan estimasi yang dapat mengakibatkan penyesuaian material pada tahun berikutnya termasuk di Catatan 14, pengukuran liabilitas imbalan kerja: asumsi aktuarial.

Information about assumptions and estimation uncertainties that may result in a material adjustment within the following year is included in Note 14, measurement of employee benefits obligation: actuarial assumptions.

Di tahun 2014, manajemen memperbaharui taksiran masa manfaat atas beberapa aset tetap untuk produksi dengan mempertimbangkan saat manfaat ekonomi yang diterima dari aset tersebut. Perubahan taksiran ini diterapkan secara prospektif dimulai dari tahun 2014. Dampak dari perubahan ini tidak material terhadap hasil operasi Perseroan di tahun 2014.

In 2014, management updated the estimated useful lives of certain production fixed assets having considered the timing of the economic benefits to be received from these assets. This change in estimate has been accounted for on a prospective basis starting in 2014. The impact of the change to the 2014 results of operations was immaterial.




10

2. DASAR PENYUSUNAN (Lanjutan) 2. BASIS OF PREPARATION (Continued)

f. Perubahan kebijakan akuntansi f. Changes in accounting policies

Sejak 1 Januari 2015, Perseroan mengadopsi ketentuan Pernyataan Standar Akuntansi Keuangan (“PSAK”) No. 24 (Revisi 2013), lmbalan Kerja, dimana pengukuran kembali liabilitas neto imbalan pasti (misalnya keuntungan dan kerugian aktuarial) diakui segera di penghasilan komprehensif lainnya. Sebelumnya, Perseroan mengakuinya di laba rugi menggunakan pendekatan koridor yang memperbolehkan penangguhan pengakuan atas keuntungan dan kerugian aktuarial.

Since 1 January 2015, the Company adopts the provisions of Statement of Financial Accounting Standard (“PSAK”) No. 24 (2013 Revision), Employee Benefits, where remeasurements of the net defined benefit liability (for example, actuarial gains and losses) are recognized immediately in other comprehensive income. Previously, the Company recognized it in profit or loss using the corridor approach that allowed for deferred recognition of actuarial gain and losses.

Sebagai tambahan, ketika manfaat dari suatu program berubah atau suatu program mengalami kurtailmen, dampak perubahan manfaat sehubungan dengan biaya jasa lalu atau keuntungan atau kerugian kurtailmen diakui segera di laba rugi. Sebelumnya, biaya jasa lalu yang belum menjadi hak karyawan diamortisasi ke laba rugi dengan metode garis lurus selama periode rata-rata sisa masa kerja ekspektasian.

In addition, when the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. Previously, non-vested past service cost was amortized to profit or loss on a straight line basis over the estimated average remaining vesting period.

Sesuai dengan ketentuan transisi dari PSAK tersebut, Perseroan menerapkan perubahan kebijakan akuntansi ini secara retrospektif dan telah menyajikan kembali informasi komparatif di dalam laporan keuangan ini (lihat Catatan 29).

In accordance with the transitional provision of the PSAK, the Company has applied the change in this accounting policy retrospectively and has restated the comparative information presented in these financial statements (see Note 29).

3. IKHTISAR KEBIJAKAN AKUNTANSI 3. SUMMARY OF SIGNIFICANT YANG PENTING ACCOUNTING POLICIES

Kebijakan akuntansi dibawah ini telah diterapkan secara konsisten terhadap seluruh periode yang disajikan di laporan keuangan ini.

The accounting policies set out below have been applied consistently to all periods presented in these financial statements.

a. 0 Setara kas a. Cash equivalents

Deposito berjangka yang jatuh temponya tidak lebih dari tiga bulan sejak tanggal penempatannya dianggap sebagai setara kas.

Time deposits with original maturities of three months or less are considered as cash equivalents.




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3. IKHTISAR KEBIJAKAN AKUNTANSI 3. SUMMARY OF SIGNIFICANT YANG PENTING (Lanjutan) ACCOUNTING POLICIES (Continued)

b. Instrumen keuangan b. Financial instruments

Aset keuangan Perseroan terdiri dari kas dan setara kas, piutang usaha dan piutang lainnya, yang dikategorikan sebagai “Pinjaman yang diberikan dan piutang”. Liabilitas keuangan Perseroan terdiri dari utang usaha, beban akrual dan liabilitas jangka pendek lainnya, yang dikategorikan sebagai “Liabilitas keuangan yang diukur pada biaya perolehan diamortisasi”.

The Company’s financial assets comprise cash and cash equivalents, trade receivables and other receivables, which are categorized as “Loans and receivables”. Financial liabilities comprise trade payables, accrued expenses and other current liabilities, which are categorized as “Financial liabilities measured at amortized cost”.

Aset keuangan yang dikategorikan sebagai pinjaman yang diberikan dan piutang awalnya diukur pada nilai wajar, ditambah biaya transaksi yang dapat diatribusikan secara langsung. Setelah pengukuran awal, aset keuangan tersebut dicatat sebesar biaya perolehan diamortisasi, setelah dikurangi penyisihan kerugian penurunan nilai, jika diperlukan. Biaya perolehan diamortisasi diukur dengan mendiskontokan nilai aset menggunakan suku bunga efektif, kecuali efek diskonto tidak signifikan. Suku bunga efektif adalah suku bunga yang mendiskontokan arus kas masa depan yang diharapkan dengan nilai tercatat neto, pada pengakuan awal. Efek bunga dari penerapan metode suku bunga efektif diakui dalam laba atau rugi.

Financial assets that are categorized as loans and receivables are initially measured at fair value, plus any directly attributable transaction costs. Subsequent to initial measurement, they are carried at amortized cost, net of provision for impairment, if necessary. Amortized cost is measured by discounting the asset amounts using the effective interest rate, unless the effect of discounting would be insignificant. The effective interest rate is the rate that discounts expected future cash flows to the net carrying amount, on initial recognition. Interest effects from the application of the effective interest method are recognized in profit or loss.

Penyisihan penurunan nilai diakui untuk aset keuangan yang dikategorikan sebagai pinjaman yang diberikan dan piutang bila terdapat bukti obyektif bahwa Perseroan tidak akan mampu memulihkan nilai tercatat sesuai dengan ketentuan awal dari instrumen tersebut. Nilai kerugian penurunan nilai merupakan selisih antara nilai tercatat aset keuangan dan nilai sekarang dari estimasi arus kas yang didiskonto menggunakan suku bunga efektif awal. Perubahan penyisihan penurunan nilai diakui dalam laba atau rugi.

An impairment provision is recognized for financial assets that are categorized as loans and receivables when there is objective evidence that the Company will not be able to recover their carrying amounts according to the original terms of the instrument. The amount of the impairment loss is the difference between the carrying amount of the financial asset and the present value of its estimated future cash flows discounted at the original effective interest rate. Changes in the impairment provision are recognized in profit or loss.

Liabilitas keuangan awalnya diukur pada nilai wajar, dikurangi biaya transaksi yang dapat diatribusikan secara langsung, dan setelahnya diukur pada biaya perolehan diamortisasi dengan menggunakan metode suku bunga efektif.

Financial liabilities are initially measured at fair value less any directly attributable transaction costs, and subsequently are measured at amortized cost using the effective interest method.

Aset keuangan dan liabilitas keuangan dapat saling hapus dan nilai netonya disajikan dalam laporan posisi keuangan jikalau Perseroan memiliki hak yang berkekuatan hukum untuk melakukan saling hapus atas jumlah yang telah diakui dan ada niat untuk menyelesaikan secara neto, atau pada saat aset tersebut direalisasi dan liabilitas tersebut diselesaikan secara simultan.

Financial assets and liabilities are offset and the net amount is presented in the statement of financial position when there is a legal right of offset and there is an intention to settle on a net basis, or when the asset is realized and the liability settled simultaneously.




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c. Penilaian persediaan c. Inventory valuation

Persediaan dinilai berdasarkan biaya persediaan atau nilai realisasi neto, mana yang lebih rendah. Biaya persediaan dihitung dengan metode rata-rata. Nilai realisasi neto merupakan estimasi harga jual pada aktivitas normal Perseroan dikurangi biaya penyelesaian dan biaya lainnya yang diperlukan sampai barang siap dijual.

Inventories are valued at the lower of cost or net realizable value. Cost of inventories is computed using average method. Net realizable value is the estimated selling price in the ordinary course of business less completion costs and other costs necessary to make the goods saleable.

Biaya barang dalam pengolahan pada tanggal pelaporan termasuk biaya produksi rata-rata sesuai dengan estimasi tingkat penyelesaiannya, berdasarkan kapasitas operasi normal.

Cost of goods in the production process at the reporting date includes a share of production costs proportional to their estimated stage of completion, based on normal operating capacity.

Penyisihan penurunan nilai persediaan ditetapkan berdasarkan penelaahan manajemen atas keadaan persediaan pada akhir tahun.

Provision for decline in value of inventory is provided based on management’s review of the inventory’s status at year end.

d.0 Aset tetap d. Fixed assets

Tanah yang diperoleh dengan sertifikat “Hak Guna Bangunan” dan “Hak Guna Bangunan di atas Hak Pengelolaan Lahan” diukur sebesar harga perolehan (termasuk biaya legal dan administrasi untuk memperoleh tanah) dan tidak diamortisasi.

Lands acquired under “Hak Guna Bangunan” and “Hak Guna Bangunan over Hak Pengelolaan Lahan” titles are measured at acquisition cost (include legal and administrative costs incurred in transactions to acquire the land) and are not amortized.

Aset tetap selain tanah dinyatakan sebesar harga perolehan dikurangi akumulasi penyusutan dan akumulasi kerugian penurunan nilai.

Fixed assets other than land are stated at cost less accumulated depreciation and accumulated impairment losses.

Penyusutan dihitung sejak bulan aset tersebut siap sesuai dengan tujuan penggunaannya, dengan metode garis lurus, berdasarkan taksiran masa manfaat atas aset sebagai berikut:

Depreciation is applied from the month such assets are ready for their intended uses, using the straight-line method over the estimated useful lives of the assets as follows:

Bangunan dan sarana 10 & 30 tahun/years Buildings and structures Tungku peleburan 4 - 13 tahun/years Furnaces Lapisan tungku peleburan 4 tahun/years Furnace lining Mesin dan peralatan 2 - 13 tahun/years Machinery and equipment Roller untuk kaca berpola 3 tahun/years Figured glass rollers Kendaraan bermotor 5 tahun/years Motor vehicles Perkakas, palet, perlengkapan dan perabot 2 - 8 tahun/years Tools, pallets, furniture and fixtures

Metode penyusutan dan masa manfaat aset ditelaah dan jika perlu disesuaikan, pada setiap tanggal pelaporan.

Depreciation method and useful lives are reviewed at each reporting date and adjusted if appropriate.




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d.0 Aset tetap (Lanjutan) d. Fixed assets (Continued)

Aset dalam penyelesaian/instalasi merupakan akumulasi biaya material, peralatan dan biaya lainnya yang terkait langsung dengan konstruksi/instalasi aset tetap. Akumulasi biaya tersebut akan direklasifikasi ke kategori aset tetap yang bersangkutan pada saat konstruksi/instalasi selesai dan aset tersebut siap untuk digunakan sesuai dengan tujuannya.

Assets under construction/installation represent the accumulated costs of materials, equipment and other costs directly related to the construction/installation of the fixed assets. The accumulated cost is reclassified to the related category of fixed assets when the construction/ installation is completed and the asset is ready for its intended use.

Biaya pemeliharaan dan perbaikan diakui dalam laba atau rugi saat terjadinya, sedangkan biaya yang selanjutnya timbul untuk menambah atau mengganti bagian dari aset tetap dikapitalisasi ketika kriteria pengakuan terpenuhi.

Repair and maintenance costs are recognized in profit or loss as incurred, while costs incurred subsequently to add to or replace part of the fixed assets are capitalized when the recognition criteria are met.

e. Aset takberwujud e. Intangible assets

Aset takberwujud yang dibeli, yang terdiri dari lisensi piranti lunak komputer, mempunyai masa manfaat yang terbatas, dan diukur pada harga perolehannya dikurangi akumulasi amortisasi dan akumulasi penurunan nilai. Amortisasi diakui dalam laba rugi dengan metode garis lurus sepanjang taksiran masa manfaat 3 sampai 4 tahun, sejak bulan dimana aset takberwujud tersebut siap untuk digunakan.

Purchased intangible assets, which comprise computer software licenses, have finite useful lives, and are measured at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives of 3 to 4 years, from the month they are available for use.

f. Penurunan nilai aset non-keuangan f. Impairment of non-financial assets

Nilai tercatat aset non-keuangan Perseroan ditelaah pada setiap tanggal pelaporan untuk menentukan apakah terdapat indikasi penurunan nilai. Jika terdapat indikasi tersebut maka nilai terpulihkan aset tersebut diestimasi.

The carrying amounts of the Company’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists then the asset’s recoverable amount is estimated.

Rugi penurunan nilai diakui jika nilai tercatat unit penghasil kas melebihi nilai terpulihkannya. Unit penghasil kas adalah kelompok terkecil aset yang dapat diidentifikasi dan menghasilkan arus kas yang sebagian besar independen dari aset lainnya. Rugi penurunan nilai diakui dalam laba rugi.

An impairment loss is recognized if the carrying amount of a cash-generating unit exceeds its recoverable amount. A cash-generating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets. Impairment losses are recognized in profit or loss.

Nilai terpulihkan unit penghasil kas adalah nilai yang lebih tinggi antara nilai pakai dan nilai wajar dikurangi dengan biaya untuk melepas. Dalam menentukan nilai pakai, estimasi arus kas masa depan didiskontokan ke nilai sekarang dengan menggunakan tingkat diskonto sebelum pajak yang mencerminkan penilaian pasar kini atas nilai waktu uang dan risiko spesifik atas unit penghasil kas tersebut.

The recoverable amount of a cash-generating unit is the greater of its value in use and its fair value less costs of disposal. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the cash-generating unit.




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f. Penurunan nilai aset non-keuangan (Lanjutan) f. Impairment of non-financial assets (Continued)

Rugi penurunan nilai yang diakui pada periode sebelumnya dievaluasi pada setiap tanggal pelaporan untuk indikasi apakah rugi penurunan nilai telah berkurang atau tidak ada lagi. Rugi penurunan nilai dipulihkan jika terjadi perubahan dalam estimasi yang digunakan untuk menentukan nilai terpulihkan. Rugi penurunan nilai dipulihkan sebatas nilai tercatat unit penghasil kas tersebut yang tidak melebihi nilai tercatat yang seharusnya diakui, setelah dikurangi depresiasi atau amortisasi, jika rugi penurunan nilai tidak diakui.

Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the cash-generating unit’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

g. .Aset tidak lancar yang dimiliki untuk dijual g. Non-current assets held for sale

Aset tidak lancar yang diklasifikasikan sebagai dimiliki untuk dijual jika jumlah tercatatnya akan dipulihkan terutama melalui transaksi penjualan daripada melalui pemakaian berlanjut. Sebelum klasifikasi awal aset tidak lancar sebagai dimiliki untuk dijual, jumlah tercatat aset diukur sesuai dengan kebijakan akuntansi Perseroan untuk aset sejenis dan kemudian aset tersebut diukur pada nilai yang lebih rendah antara jumlah tercatat dan nilai wajar setelah dikurangi biaya untuk menjual. Penurunan nilai atas aset diakui dalam laba atau rugi.

Non-current assets that are expected to be recovered primarily through sale rather than through continuing use are classified as held for sale. Immediately before classification as held for sale, the assets are remeasured in accordance with the Company’s accounting policies for similar assets and subsequently the assets are measured at the lower of their carrying amount and fair value less costs to sell. The resulting impairment losses are immediately recognized in profit or loss.

h... Imbalan kerja h. Employee benefits

Liabilitas atas imbalan kerja dihitung sebesar nilai kini dari taksiran jumlah imbalan kerja di masa depan yang timbul dari jasa yang telah diberikan oleh karyawan pada masa kini dan masa lalu. Perhitungan dilakukan oleh aktuaris berkualifikasi dengan metode projected unit credit.

The obligation for employee benefits is calculated at the present value of estimated future benefits that the employees have earned in return for their services in the current and prior periods. The calculation is performed by a qualified actuary using the projected unit credit method.

Sejak 1 Januari 2015, Perseroan mengadopsi ketentuan PSAK No. 24 (Revisi 2013), lmbalan Kerja, dimana pengukuran kembali liabilitas imbalan pasti (misalnya keuntungan dan kerugian aktuarial) diakui segera di penghasilan komprehensif lainnya. Sebelumnya, Perseroan mengakuinya di laba rugi menggunakan pendekatan koridor yang memperbolehkan penangguhan pengakuan atas keuntungan dan kerugian aktuarial.

Since 1 January 2015, the Company adopts the provisions of PSAK No. 24 (2013 Revision), Employee Benefits, where remeasurements of the net defined benefit liability (for example, actuarial gains and losses) are recognized immediately in other comprehensive income. Previously, the Company recognized it in profit or loss using the corridor approach that allowed for deferred recognition of actuarial gains and losses.




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h... Imbalan kerja (Lanjutan) h. Employee benefits (Continued)

Sebagai tambahan, ketika manfaat dari suatu program berubah atau suatu program mengalami kurtailmen, dampak perubahan manfaat sehubungan dengan biaya jasa lalu atau keuntungan atau kerugian kurtailmen diakui segera di laba rugi. Sebelumnya, biaya jasa lalu yang belum menjadi hak karyawan diamortisasi ke laba rugi dengan metode garis lurus selama periode rata-rata sisa masa kerja ekspektasian.

In addition, when the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. Previously, non-vested past service cost was amortized to profit or loss on a straight line basis over the estimated average remaining vesting period.

Sesuai dengan ketentuan transisi dari PSAK tersebut, Perseroan menerapkan perubahan kebijakan akuntansi ini secara retrospektif dan telah menyajikan kembali informasi komparatif di dalam laporan keuangan ini (lihat Catatan 29).

In accordance with the transitional provision of the PSAK, the Company has applied the change in this accounting policy retrospectively and has restated the comparative information presented in these financial statements (see Note 29).

i. Pengakuan pendapatan dan beban i. Revenue and expense recognition

Pendapatan dari penjualan produk diukur pada nilai wajar imbalan yang diterima atau dapat diterima, setelah dikurangi retur, penyisihan dan diskon perdagangan. Pendapatan diakui pada saat bukti persuasif ada bahwa risiko dan manfaat kepemilikan telah dialihkan secara signifikan kepada pelanggan, pemulihan imbalan kemungkinan besar akan terjadi, biaya yang terkait dan kemungkinan pengembalian produk dapat diukur dengan andal, dan manajemen tidak lagi ikut serta dalam pengelolaan produk tersebut. Jika besar kemungkinan bahwa diskon akan diberikan dan jumlahnya dapat diukur dengan andal, diskon tersebut diakui sebagai pengurang pendapatan ketika penjualan diakui.

Revenue from sale of products is measured at the fair value of the consideration received or receivable, net of returns, allowances and trade discounts. Revenue is recognized when persuasive evidence exists that significant risks and reward of ownership have been transferred to the customer, recovery of the consideration is probable, the associated costs and possible return of products can be measured reliably, and there is no continuing management involvement with the products. If it is probable that discounts will be granted and the amount can be measured reliably, the discount is recognized as a reduction of revenue when the sales are recognized.

Pengalihan risiko dan manfaat bervariasi tergantung pada ketentuan-ketentuan dalam setiap kontrak penjualan. Untuk penjualan domestik kaca lembaran, pengalihan risiko dan manfaat umumnya terjadi pada saat produk keluar dari gudang Perseroan. Untuk penjualan domestik kaca otomotif, pengalihan risiko dan manfaat umumnya terjadi pada saat produk diterima oleh pelanggan. Untuk penjualan ekspor, pengalihan risiko dan manfaat umumnya terjadi pada saat produk dimuat ke dalam angkutan laut atau udara. Beban diakui pada saat terjadinya.

Transfers of risks and rewards vary depending on the individual terms of the contract of sale. For domestic sales of flat glass, the transfers of risks and rewards generally occur when the products exit from the Company’s warehouse. For domestic sales of automotive glass, the transfer of risk and rewards generally occurs when the products are received by the customers. For export sales, the transfers of risks and rewards generally occurs upon loading the products onto the sea or air carrier. Expenses are recognized when incurred.




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j. Penjabaran valuta asing j. Foreign currency translation Transaksi dalam mata uang asing dijabarkan ke Rupiah dengan kurs tanggal transaksi. Aset dan liabilitas moneter dalam mata uang asing dijabarkan dalam Rupiah dengan menggunakan kurs yang berlaku pada tanggal pelaporan.

Transactions in foreign currencies are translated into Rupiah at the rates of exchange prevailing at transaction date. Monetary assets and liabilities denominated in foreign currencies are translated to Rupiah at the exchange rates at the reporting date.

Laba dan rugi kurs atas aset dan liabilitas moneter merupakan selisih antara biaya perolehan diamortisasi dalam Rupiah pada awal periode, disesuaikan dengan suku bunga efektif dan pembayaran selama periode berjalan dan biaya perolehan diamortisasi dalam mata uang asing yang dijabarkan ke Rupiah dengan menggunakan kurs pada tanggal pelaporan.

The foreign exchange gain and loss on monetary items is the difference between amortized cost in Rupiah at the beginning of the period as adjusted for effective interest rate and payments during the period, and the amortized cost in foreign currency translated into Rupiah at the exchange rate at reporting date.

Aset dan liabilitas nonmoneter dalam mata uang asing yang diukur menggunakan biaya historis dijabarkan menggunakan kurs yang berlaku pada tanggal transaksi.

Non-monetary assets and liabilities denominated in a foreign currency that are measured at historical cost are translated using the exchange rate at the date of transaction.

Keuntungan dan kerugian kurs atas penjabaran aset dan liabilitas keuangan yang dihasilkan dari aktivitas operasi diakui dalam laba rugi.

Foreign currency gains and losses on retranslation of financial assets and liabilities that arise from operating activities are generally recognized in profit or loss.

k. Pendapatan keuangan k. Finance income

Pendapatan yang berasal dari aktivitas pendanaan yang tidak terkait dengan kegiatan utama Perseroan dicantumkan dalam laba rugi sebagai bagian dari “Pendapatan keuangan”.

Income derived from financing activities that does not arise from the Company’s principal activities are reflected in profit or loss as part of “Finance income”.

Pendapatan keuangan terdiri dari pendapatan bunga atas dana yang diinvestasikan.

Finance income comprises interest income on funds invested.

l.. Pajak penghasilan

l. Income tax

Beban pajak penghasilan terdiri dari pajak kini dan pajak tangguhan penghasilan badan. Pajak kini dan pajak tangguhan diakui dalam laba atau rugi, kecuali jika pajak tersebut terkait dengan kejadian yang diakui secara langsung di ekuitas atau di penghasilan komprehensif lain.

Income tax expense comprises current and deferred corporate income tax. Current tax and deferred tax are recognized in profit or loss, except to the extent that they relate to items recognized directly in equity or in other comprehensive income.

Pajak kini adalah utang pajak atau pajak yang dapat dikembalikan yang diharapkan atas penghasilan atau rugi kena pajak selama tahun berjalan, dengan menggunakan tarif pajak yang secara substantif telah berlaku pada saat tanggal pelaporan, dan termasuk penyesuaian terhadap cadangan pajak tahun-tahun sebelumnya baik untuk merekonsiliasi cadangan tersebut dengan pajak penghasilan yang dilaporkan dalam SPT Tahunan Pajak Penghasilan, atau untuk mencatat perbedaan yang timbul dari pemeriksaan pajak.

Current tax is the expected tax payable or refundable on taxable income or loss for the year, using tax rates substantively enacted as of the reporting date, and includes true-up adjustments made to the previous years’ tax provisions either to reconcile them with the income tax reported in annual tax return, or to account for differences arising from tax assessments.




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3. .IKHTISAR KEBIJAKAN AKUNTANSI 3. SUMMARY OF SIGNIFICANT YANG PENTING (Lanjutan) ACCOUNTING POLICIES (Continued)

l.. Pajak penghasilan (Lanjutan)

l. Income tax (Continued)

Pajak tangguhan diakui atas semua perbedaan temporer antara nilai tercatat aset dan liabilitas untuk tujuan pelaporan keuangan dan nilai yang digunakan untuk tujuan perpajakan. Pajak tangguhan di tentukan dengan menggunakan tarif pajak yang diharapkan untuk diterapkan terhadap perbedaan temporer pada saat pembalikan, berdasarkan peraturan yang telah berlaku atau secara substantif berlaku pada saat tanggal pelaporan keuangan. Metode ini juga mengharuskan pengakuan manfaat pajak masa depan, seperti kompensasi rugi fiskal, apabila besar kemungkinan manfaat pajak tersebut dapat direalisasi.

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted as of the reporting date. This method also requires the recognition of future tax benefits, such as tax loss carry forwards, to the extent that realization of such benefit is probable.

m. Laba per saham m. Earnings per share

Laba per saham dihitung dengan membagi laba tahun berjalan dengan jumlah rata-rata tertimbang saham beredar/ditempatkan dalam tahun yang bersangkutan.

Earnings per share is computed by dividing profit for the year by the weighted average of total outstanding/issued shares during the year.

n. Transaksi dengan pihak-pihak berelasi

n. Transactions with related parties

Dalam laporan keuangan ini, istilah “pihak berelasi” digunakan sesuai dengan PSAK No. 7 (Revisi 2010), “Pengungkapan Pihak-Pihak Berelasi”. Seluruh transaksi dan saldo yang signifikan dengan pihak- pihak berelasi diungkapkan dalam catatan terlampir.

In these financial statements, the term “related party” is used in accordance with PSAK No. 7 (2010 Revision), “Related Parties Disclosures”. All significant transactions and balances with related parties are disclosed in the following notes.

o. Informasi segmen o. Segment information

Segmen operasi diidentifikasikan berdasarkan jenis usaha (kaca lembaran dan kaca otomotif) dan segmen geografis (pasar lokal dan ekspor). Beban yang timbul akan dibebankan pada setiap segmen dimana terjadinya beban. Kebijakan akuntansi diterapkan secara konsisten di setiap segmen. Seluruh transaksi antar segmen dieliminasi.

Operating segments are identified based on the nature of their business (flat glass and automotive glass) and geographical segments (domestic and export market). Expenses are charged to each segment wherein the expenses are incurred. The accounting policies are consistently applied within each segment. Inter-segment transactions are eliminated.




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4. KAS DAN SETARA KAS 4. CASH AND CASH EQUIVALENTS

31 Desember/31 December Dalam jutaan Rupiah 2015 2014 In millions of Rupiah

Kas: Cash on hand:

Rupiah 972 850 Rupiah Valuta asing 87 135 Foreign currencies

Jumlah kas 1.059 985 Total cash on hand Kas di bank: Cash in banks:

Akun rupiah: Rupiah accounts: PT Bank Mandiri (Persero) Tbk 52 152 PT Bank Mandiri (Persero) Tbk PT Bank Ganesha 676 583 PT Bank Ganesha The Bank of Tokyo-Mitsubishi

UFJ Ltd., cabang Jakarta 2.904

121 The Bank of Tokyo-Mitsubishi

UFJ Ltd., Jakarta branch PT Bank Negara Indonesia Tbk 212 204 PT Bank Negara Indonesia Tbk Deutsche Bank AG,

cabang Jakarta 16

21 Deutsche Bank AG,

Jakarta branch PT Bank Mizuho Indonesia 6 12 PT Bank Mizuho Indonesia

3.866 1.093

Akun valuta asing: Foreign currency accounts: Deutsche Bank AG,

cabang Jakarta 11

13 Deutsche Bank AG,

Jakarta branch PT Bank Mizuho Indonesia 13 5 PT Bank Mizuho Indonesia The Bank of Tokyo-Mitsubishi

UFJ Ltd., cabang Jakarta 103

105 The Bank of Tokyo-Mitsubishi

UFJ Ltd., Jakarta branch 127 123

Jumlah kas di bank 3.993 1.216 Total cash in banks Deposito berjangka di bank: Time deposits in banks:

Akun rupiah: Rupiah accounts: The Bank of Tokyo-Mitsubishi

UFJ Ltd., cabang Jakarta 120.810

349.575 The Bank of Tokyo-Mitsubishi

UFJ Ltd., Jakarta branch PT Bank Mizuho Indonesia - 57.425 PT Bank Mizuho Indonesia PT Bank Mandiri (Persero)Tbk 265.000 295.000 PT Bank Mandiri (Persero) Tbk

385.810 702.000 Akun valuta asing: Foreign currency accounts:

The Bank of Tokyo-Mitsubishi UFJ Ltd., cabang Jakarta 357.770

206.844

The Bank of Tokyo-Mitsubishi UFJ Ltd., Jakarta branch

PT Bank Mizuho Indonesia 183.129 186.986 PT Bank Mizuho Indonesia Deutsche Bank AG,

cabang Jakarta - 9.380 Deutsche Bank AG,

Jakarta branch 540.899 403.210

Jumlah deposito berjangka di bank 926.709 1.105.210 Total time deposits in banks

931.761 1.107.411

Deposito berjangka menghasilkan bunga pada tarif sebagai berikut: 2015

2014

Time deposits earned interest at the following rates:

Deposito Rupiah 4,90% - 9,75% 4,95% - 11,25% Deposits in Rupiah Deposito Dolar Amerika Serikat 0,01% - 0,50% 0,03% - 0,33% Deposits in U.S. Dollar Deposito Yen Jepang 0,005% - 0,010% 0,005% - 0,030% Deposits in Japanese Yen

Tidak ada saldo kas dan setara kas yang digunakan sebagai jaminan.

There are no balances of cash and cash equivalents pledged as collateral.

Lihat Catatan 26 untuk rincian saldo kas dan setara kas dalam valuta asing.

See Note 26 for details of cash and cash equivalents denominated in foreign currencies.

Tidak ada bank yang merupakan pihak berelasi. None of the banks are related parties.




19

5. PIUTANG USAHA 5. TRADE RECEIVABLES

31 Desember/31 December Dalam jutaan Rupiah 2015 2014 In millions of Rupiah Pihak ketiga 94.998 90.882 Unrelated parties Pihak berelasi: Related parties:

AGC Asia Pacific Pte., Ltd., AGC Asia Pacific Pte., Ltd., Singapura 137.510 132.109 Singapore

PT Rodamas, Indonesia 94.639 107.440 PT Rodamas, Indonesia Asahi Glass Co., Ltd., Jepang 10.306 8.861 Asahi Glass Co., Ltd., Japan Auto Glass Co., Ltd., Jepang 6.677 4.726 Auto Glass Co., Ltd., Japan AGC Automotive Philippines Inc. 5.790 6.377 AGC Automotive Philippines Inc. AGC Automotive China Co., Ltd. 1.640 2.247 AGC Automotive China Co., Ltd. AGC Automotive (Thailand) Co.,

Ltd. 569 1.313 AGC Automotive (Thailand) Co.,

Ltd. Pelanggan lainnya 1.314 351 Other customers

258.445 263.424

353.443 354.306 Rincian piutang usaha dalam

mata uang:

Trade receivables by currency type: Rupiah 189.508 197.761 Rupiah Valuta asing 163.935 156.545 Foreign currencies

353.443 354.306

Manajemen telah mengevaluasi kolektibilitas dari masing-masing saldo piutang usaha dan menetapkan bahwa seluruhnya dapat tertagih, sehingga tidak diperlukan penyisihan penurunan nilai.

Management has evaluated the collectability of each trade receivable balance and has determined that all balances remain collectible and therefore, provision for impairment is not required.

Tidak ada saldo piutang usaha yang digunakan sebagai jaminan.

There are no balances of trade receivables pledged as collateral.

Lihat Catatan 26 untuk rincian saldo piutang usaha dalam valuta asing.

See Note 26 for details of trade receivables that are denominated in foreign currencies.

6. PIUTANG LAINNYA 6. OTHER RECEIVABLES


Piutang dari pelanggan lokal untuk

menjamin pengembalian palet 21.486

4.751 Receivables from domestic customers to

guarantee return of pallets Piutang karyawan 12.512 11.310 Receivables from employees Lainnya 17.487 13.450 Other 51.485 29.511

Manajemen telah mengevaluasi kolektibilitas dari semua piutang lainnya dan menetapkan bahwa seluruhnya tertagih, sehingga tidak diperlukan penyisihan penurunan nilai.

Management has evaluated the collectability of all other receivables and has determined that all balances remain collectible and therefore, provision for impairment is not required.




20

7. PERSEDIAAN 7. INVENTORIES


Barang jadi 371.856 329.266 Finished goods Barang dalam produksi 24.764 25.345 Goods in production Bahan baku 193.295 139.077 Raw materials Bahan pembantu 65.409 83.947 Supplementary materials Suku cadang, keperluan pabrik dan

perkakas 144.658

122.298 Spare parts, factory supplies and tools 799.982 699.933 Barang dalam perjalanan 61.212 45.115 Goods in transit 861.194 745.048

Manajemen telah mengevaluasi penurunan nilai persediaan dan menetapkan bahwa nilai realisasi neto dari semua persediaan melebihi jumlah tercatat, sehingga tidak ada penurunan nilai persedian.

Management has evaluated inventory items for impairment and has determined that the net realizable values of all inventory items exceed their carrying amounts and therefore, there is no impairment.

Per 31 Desember 2015, persediaan telah diasuransikan terhadap berbagai risiko kerugian dengan jumlah pertanggungan sebesar USD 55.094.524 atau setara dengan Rp 760.029 juta (2014: USD 55.094.524 atau setara dengan Rp 685.376 juta), yang menurut keyakinan manajemen cukup memadai untuk menutup kemungkinan kerugian yang timbul dari risiko-risiko tersebut.

As of 31 December 2015, inventories were insured against various risks for a total coverage of USD 55,094,524 or equivalent to Rp 760,029 million (2014: USD 55,094,524 or equivalent to Rp 685,376 million), which in management’s opinion is adequate to cover possible losses arising from such risks.

Tidak ada persediaan yang digunakan sebagai jaminan. There are no inventories pledged as collateral.

8. PEMBAYARAN DIMUKA LAINNYA 8. OTHER PREPAYMENTS


Uang muka pembelian persediaan 3.592 2.933 Advances for inventory purchases Lainnya 11.092 11.828 Other 14.684 14.761

9. ASET TIDAK LANCAR LAINNYA 9. OTHER NON-CURRENT ASSETS


Uang muka pembelian aset tetap 62.305 29.711 Advances for fixed asset purchases Piutang karyawan 20.259 20.255 Employee receivables Lainnya 16.086 13.884 Other 98.650 63.850




21

10. ASET TETAP 10. FIXED ASSETS

2015

Dalam jutaan Rupiah

Saldo/ Balance 1/1/2015

Penambahan/ Additions

Pelepasan/ Disposals

Reklasifikasi/ Reclassifications

Saldo/ Balance

31/12/2015 In millions of Rupiah Harga perolehan Acquisition cost ) Tanah 374.041 - -) (86.938)** 287.103 Land Bangunan dan sarana 334.676 586 (468) 34.750) )) 369.544 Buildings and structures Tungku peleburan 522.142 - (1.658) 1.599) )) 522.083 Furnaces Mesin dan peralatan 1.986.571 7.009 (12.132) 126.303) )) 2.107.751 Machinery and equipment Roller untuk kaca berpola 9.367 710 (-) -))) 10.077 Figured glass rollers Kendaraan bermotor 35.548 2.334 (3.181) -))) 34.701 Motor vehicles Perkakas, palet,

perlengkapan dan perabot 384.259 44.995 (1.446) 3.786) )) 431.594 Tools, pallets, furniture

and fixtures 3.646.604 55.634 (18.885) 79.500) )) 3.762.853 Aset dalam penyelesaian/instalasi 77.500 454.407 -) (79.500))) 452.407

Assets under construction/ installation

3.724.104 510.041 (18.885) -))) 4.215.260

Akumulasi penyusutan Accumulated

depreciation Bangunan dan sarana (183.363) (11.411) 468 -))) (194.306) Buildings and structures Tungku peleburan (298.221) (42.398) 244 -))) (340.375) Furnaces Mesin dan peralatan (1.366.881) (102.772) 11.176 -))) (1.458.477) Machinery and equipment Roller untuk kaca berpola (7.169) (1.524) - -))) (8.693) Figured glass rollers Kendaraan bermotor (32.046) (1.915) 3.157 -))) (30.804) Motor vehicles Perkakas, palet,

perlengkapan dan perabot (302.392) (51.881) 1.446 -))) (352.827) Tools, pallets, furniture

and fixtures (2.190.072) (211.901) 16.491 -))) (2.385.482) Penyisihan penurunan nilai (3.196) (3.686) - -))) (6.882) Provision for impairment Jumlah tercatat 1.530.836) 1.822.896) Carrying amount

** Di tahun 2015, Perseroan menemukan bahwa di dalam biaya

pematangan tanah yang telah dikapitalisasi ke tanah di tahun 2014, terdapat biaya konstruksi pondasi bangunan, dimana sampai dengan 31 Desember 2015 bangunan terkait masih dalam tahap konstruksi. Karenanya, Perseroan mengklasifikasikan kembali biaya tersebut ke aset dalam penyelesaian.

** In 2015, the Company found out that in the land development cost that has been capitalized to land in 2014, there were costs to construct building foundation, in which up to 31 December 2015 the corresponding building is still under construction. Therefore, the Company reclassified the costs back to assets under construction.

2014

Dalam jutaan Rupiah





Saldo/ Balance

31/12/2014 In millions of Rupiah Harga perolehan Acquisition cost ) Tanah 254.060 114.670) -) 5.311) 374.041) Land Bangunan dan sarana 319.096 11.663) (3) 3.920) 334.676) Buildings and structures Tungku peleburan 522.142 -) -) -) 522.142) Furnaces Mesin dan peralatan 1.928.008 1.090) (1.346) 58.819) 1.986.571) Machinery and equipment Roller untuk kaca berpola 7.583 1.784) -) -) 9.367) Figured glass rollers Kendaraan bermotor 37.255 26) (2.393) 660) 35.548) Motor vehicles Perkakas, palet,

perlengkapan dan perabot 329.452 35.503) (866) 20.170) 384.259) Tools, pallets, furniture

and fixtures 3.397.596 164.736) (4.608) 88.880) 3.646.604) Aset dalam penyelesaian/instalasi 73.714 92.666) -) (88.880) 77.500)

Assets under construction/ installation

3.471.310 257.402) (4.608) -) 3.724.104)




22

10. ASET TETAP (Lanjutan) 10. FIXED ASSETS (Continued)

2014

Dalam jutaan Rupiah





Saldo/ Balance

31/12/2014 In millions of Rupiah Akumulasi penyusutan Accumulated depreciation Bangunan dan sarana (171.866) (11.499) 2) -) (183.363) Buildings and structures Tungku peleburan (258.548) (39.673) -) -) (298.221) Furnaces Mesin dan peralatan (1.269.491) (98.431) 1.041) -) (1.366.881) Machinery and equipment Roller untuk kaca berpola (5.354) (1.815) -) -) (7.169) Figured glass rollers Kendaraan bermotor (32.125) (2.314) 2.393) -) (32.046) Motor vehicles Perkakas, palet,

perlengkapan dan perabot (255.779) (47.407) 794) -) (302.392) Tools, pallets, furniture

and fixtures (1.993.163) (201.139) 4.230) -) (2.190.072) Penyisihan penurunan nilai -) (3.196) -) -) (3.196) Provision for impairment Jumlah tercatat 1.478.147) 1.530.836) Carrying amount

Dalam jutaan Rupiah 2015 2014 In millions of Rupiah Penyusutan dibebankan pada:

Depreciation expense was charged to:

Beban pokok penjualan 200.999 191.267 Cost of sales Beban penjualan 8.136 6.212 Selling expenses Beban umum dan administrasi 2.766 3.660 General and administrative expenses

211.901 201.139

Selama tahun yang berakhir 31 Desember 2015 dan 2014, Perseroan telah melakukan pelepasan aset tetap sebagai berikut:

During the years ended 31 December 2015 and 2014, the Company disposed of certain fixed assets as summarized below:

Dalam jutaan Rupiah 2015 2014 In millions of Rupiah Nilai buku (2.394) (378) Net book value Hasil penerimaan neto 165) 828) Net proceeds (Rugi) Laba (2.229) 450) (Loss) gain

Aset dalam penyelesaian/instalasi terdiri dari: Assets under construction/installation consist of:

Dalam jutaan Rupiah 2015 2014 In millions of Rupiah Bangunan dan sarana 277.553 751 Buildings and structures Tungku peleburan 16.273 - Furnaces Mesin dan peralatan 149.876 67.966 Machinery and equipment Perkakas, palet, perlengkapan

dan perabot 8.705 8.783 Tools, pallets, furniture

and fixtures 452.407 77.500

Per 31 Desember 2015, tahap penyelesaian aset dalam penyelesaian/instalasi berkisar antara 15% dan 97% (31 Desember 2014: antara 20% dan 95%), dan diperkirakan akan selesai dan direklasifikasi ke masing-masing kelompok aset di tahun 2016.

At 31 December 2015, the stages of completion of assets under construction/installation were ranging between 15% and 97% (31 December 2014: between 20% and 95%), and are expected to be completed and reclassified to the related group of assets in 2016.




23


Ditahun 2015, Perseroan mengukur kembali tanah di Cikampek dengan hasil seluas 4.492 meter persegi dari sebelumnya 4.602 meter persegi. Pada tanggal 31 Desember 2015, Perseroan memiliki hak atas tanah seluas 1.780.592 meter persegi, dengan perincian sebagai berikut: (i) 1.762.577 meter persegi dimiliki Perseroan

berdasarkan sertifikat “Hak Guna Bangunan” (HGB) dan “HGB di atas Hak Pengelolaan Lahan” (HGB di atas HPL), yang akan berakhir antara tahun 2022 dan 2044, dan umumnya dapat terus berlanjut, kecuali jika Pemerintah memutuskan untuk merubah peruntukan atas wilayah tersebut untuk tujuan lain;

(ii) 7.320 meter persegi sedang dalam proses penyelesaian

akte Peralihan Hak; dan (iii) 10.695 meter persegi sedang dalam proses perolehan

sertifikat HGB atas tanah tersebut di Kantor Pertanahan.

In 2015, the Company remeasured the land at Cikampek that resulted in 4,492 square meters from previously 4,602 square meters. As of 31 December 2015, the Company owns land area of 1,780,592 square meters with the detail as follows: (i) 1,762,577 square meters owned by the Company

based on land title certificates of “Hak Guna Bangunan” (HGB) and “HGB on Hak Pengelolaan Lahan” (HGB on HPL), which will expire between year 2022 and 2044, and are generally expected to remain vested and extendable, barring a decision by the Government to rezone the area for other purpose;

(ii) 7,320 square meters are in the process of completing the deed to transfer the land’s title upon side land; and

(iii)10,695 square meters are in the process of obtaining HGB land title certificate at the Land Office.

Tanah seluas 790.834 meter persegi dan bangunan di atasnya digunakan sebagai jaminan kepada Asahi Glass Co., Ltd., Jepang (pemegang saham, Catatan 25c).

790,834 square meters of land and the buildings thereon, are pledged to Asahi Glass Co., Ltd., Japan (shareholder, Note 25c).

Per 31 Desember 2015, aset tetap kecuali tanah dan aset dalam penyelesaian/instalasi, telah diasuransikan terhadap berbagai risiko kerugian dengan nilai pertanggungan sebesar USD 325.313.970 atau setara dengan Rp 4.487.706 juta (2014: USD 325.313.970 atau setara dengan Rp 4.046.906 juta), yang menurut pendapat manajemen cukup memadai untuk menutup kemungkinan kerugian yang timbul dari risiko-risiko tersebut.

At 31 December 2015, fixed assets excluding land and assets under construction/installation, were insured against various risks for a total coverage of USD 325,313,970 or equivalent to Rp 4,487,706 million (2014: USD 325,313,970 or equivalent to Rp 4,046,906 million), which in management’s opinion is adequate to cover possible losses arising from such risks.

Dalam tahun yang berakhir 31 Desember 2015 dan 2014, Perseroan melakukan pembelian aset tetap (termasuk aset dalam penyelesaian/instalasi) dari pihak berelasi, sebagai berikut:

During the years ended 31 December 2015 and 2014, the Company purchased certain fixed assets (including assets under construction/installation) from related parties, as follows:

Dalam jutaan Rupiah 2015 2014 In millions of Rupiah Asahi Glass Co., Ltd., Jepang 89.039 8.674 Asahi Glass Co., Ltd., Japan AGC Technology Solutions (Thailand) Co.,

Ltd. 13.742 - AGC Technology Solutions (Thailand) Co.,

Ltd. AGC Technology Solutions Co., Ltd., Jepang 4.997 12.138 AGC Technology Solutions Co., Ltd., Japan AGC Automotive (Thailand) Co., Ltd. 1.292 690 AGC Automative (Thailand) Co., Ltd. PT Rodamas, Indonesia - 69 PT Rodamas, Indonesia 109.070 21.571

Per 31 Desember 2015 dan 2014, saldo sebesar Rp 16.357 juta dan Rp 4.937 juta untuk pembelian aset tetap tertentu belum dibayar.

At 31 December 2015 and 2014, balances amounting to Rp 16,357 million and Rp 4,937 million remained unpaid for purchases of certain fixed assets.




24


Per 31 Desember 2015, jumlah harga perolehan dari aset tetap yang telah disusutkan penuh tetapi masih digunakan adalah Rp 1.214.121 juta (2014: Rp 1.167.441 juta). Per 31 Desember 2015, nilai wajar tanah dan bangunan Perseroan diperkirakan sebesar Rp 7.032.773 juta, yang mana ditentukan terutama berdasarkan nilai jual yang tertera di pajak atas tanah dan bangunan.

At 31 December 2015, total acquisition cost of fully depreciated fixed assets but still in use was Rp 1,214,121 million (2014: Rp 1,167,441 million). At 31 December 2015, the fair value of the Company’s land and buildings was estimated to be Rp 7,032,773 million, which was determined mainly based on the selling values as stated in the land and building taxes.

Pada tanggal 1 September 2014, Perseroan telah menandatangani perjanjian dengan Asahi Glass Co., Ltd., Jepang (pemegang saham) untuk pembangunan pabrik baru Perseroan yang terletak di Cikampek, Jawa Barat, Indonesia. Perseroan akan membayar kepada Asahi Glass Co., Ltd., Jepang, biaya konsultasi sebesar 6% dari biaya pembangunan (Catatan 25).

On 1 September 2014, the Company entered into an agreement with Asahi Glass Co., Ltd., Japan (shareholder) for construction of the Company’s new factory in Cikampek, West Java, Indonesia. The Company will pay to Asahi Glass Co., Ltd., Japan, a consulting fee of 6% of the construction expenditure (Note 25).

Penurunan nilai aset tetap Selama tahun 2015, Perseroan membentuk penyisihan penurunan nilai aset tetap sebesar Rp 3.686 juta (2014: Rp 3.196 juta), untuk mesin dan peralatan yang nilai tercatatnya melebihi estimasi jumlah terpulihkannya.

Fixed assets impairment During 2015, the Company made a provision for impairment on fixed assets amounting to Rp 3,686 million (2014: Rp 3,196 million), for machinery and equipment whose carrying amounts exceeded their recoverable amounts.

Tanah yang dimiliki untuk dijual Sesuai dengan keputusan rapat Dewan Komisaris Perseroan tanggal 30 Oktober 2013, pada tanggal 31 Desember 2013, tanah seluas 120.786 meter persegi dengan nilai buku sebesar Rp 8.611 juta, yang terletak di Desa Tanjungsari, Kecamatan Taman, Sidoarjo, Propinsi Jawa Timur, Indonesia, disajikan sebagai tanah yang dimiliki untuk dijual. Di Juni 2014, tanah seluas 110.091 meter persegi telah dijual dan sisa seluas 10.695 meter persegi diklasifikasikan kembali sebagai aset tetap. Perseroan mencatat laba atas penjualan tanah sebesar Rp 20.499 juta.

Land held for sale Pursuant to resolution of the Company’s Board of Commissioners on 30 October 2013, as of 31 December 2013, a parcel of land measuring 120,786 square meters and carrying amount of Rp 8,611 million, located at Desa Tanjungsari, Kecamatan Taman, Sidoarjo, East Java Province, Indonesia, was designated as Land Held for Sale. In June 2014, a total of 110,091 square meters was sold and the remaining 10,695 square meters was reclassified to fixed assets. The Company recognized a gain of Rp 20,499 million from this land sale.




25

11. UTANG USAHA 11. TRADE PAYABLES

Utang usaha terutama berasal dari pembelian persediaan. Trade payables are mainly originated from purchase of inventories.

31 Desember/31 December Dalam jutaan Rupiah 2015 2014 In millions of Rupiah Pihak ketiga 223.630 219.459 Unrelated parties

Pihak berelasi: Related parties: AGC Soda Corporation, Amerika

Serikat 34.855 3.054 AGC Soda Corporation, United States

of America AGC Technology Solutions Co., Ltd.,

Jepang 7.667 6.099 AGC Technology Solutions Co., Ltd.,

Japan AGC Asia Pacific Pte., Ltd., Singapura 4.503 10.578 AGC Asia Pacific Pte., Ltd., Singapore Asahi Glass Co., Ltd., Jepang 2.305 2.843 Asahi Glass Co., Ltd., Japan PT Saint Gobain Abrasives Diamas,

Indonesia 1.966 1.239 PT Saint Gobain Abrasives Diamas,

Indonesia AGC Technology Solutions (Kunshan)

Co., Ltd., Cina 1.476 - AGC Technology Solutions (Kunshan)

Co., Ltd., China AGC Technology Solutions (Thailand)

Co., Ltd., 1.000 - AGC Technology Solutions (Thailand)

Co., Ltd., AGC Automotive (Thailand) Co., Ltd., 223 1.398 AGC Automotive (Thailand) Co., Ltd., Pemasok lainnya 363 876 Other suppliers 54.358 26.087

277.988 245.546

Rincian utang usaha dalam mata uang: Trade payables by currency type:

Rupiah 132.670 128.736 Rupiah Valuta asing 145.318 116.810 Foreign currencies

277.988 245.546

Lihat Catatan 26 untuk rincian saldo utang usaha dalam valuta asing.

See Note 26 for details of trade payables that are denominated in foreign currencies.

12. BEBAN AKRUAL 12. ACCRUED EXPENSES

31 Desember/31 December Dalam jutaan Rupiah 2015 2014 In millions of Rupiah Pengiriman dan pengangkutan 36.642 28.473 Delivery and transportation Listrik, air, dan telepon 18.743 20.601 Electricity, water, and telephone Perbaikan dan perlengkapan lainnya 13.518 1.158 Repair and sundry supplies Royalti dan komisi penjualan (pihak

berelasi, Catatan 25)

9.883

12.596 Royalties and sales commissions

(related parties, Note 25) Pengepakan dan pembelian umum 8.146 3.354 Packing and general purchase Kompensasi karyawan 7.887 9.780 Employees’ compensation Lainnya 43.702 25.144 Other 138.521 101.106

Lihat Catatan 26 untuk rincian saldo beban akrual yang terutang dalam valuta asing.

See Note 26 for details of accrued expenses that are payable in foreign currencies.




26

13. LIABILITAS JANGKA PENDEK LAINNYA 13. OTHER CURRENT LIABILITIES

31 Desember/31 December Dalam jutaan Rupiah 2015 2014 In millions of Rupiah Utang pembelian aset tetap 16.357 4.937 Payables for fixed asset purchases Pembayaran diterima dimuka dari

pelanggan

12.488

12.650

Advances received from customers Lainnya 15.363 8.544 Other 44.208 26.131

Lihat Catatan 26 untuk imbalan saldo liabilitas jangka pendek lainnya yang terutang dalam valuta asing.

See Note 26 for details of other current liabilities that are payable in foreign currencies.

14. LIABILITAS IMBALAN KERJA 14. EMPLOYEE BENEFITS OBLIGATION

Sesuai dengan peraturan Ketenagakerjaan di Indonesia, Perseroan wajib memberikan imbalan pascakerja ke karyawannya pada saat pemutusan hubungan kerja atau pada saat pensiun. Imbalan tersebut terutama didasarkan pada masa kerja dan kompensasi karyawan pada saat pemutusan hubungan kerja atau pensiun.

In accordance with Indonesian labor regulations, the Company is required to provide post-employment benefits to its employees when their employment is terminated or when they retire. These benefits are primarily based on years of service and the employees’ compensation at termination or retirement.

Mulai Februari 2015, Perseroan memiliki program iuran pasti yang mencakup karyawan tetap yang memenuhi syarat, yang dikelola dan dijalankan oleh PT Asuransi Jiwa Manulife Indonesia. Selama tahun yang berakhir 31 Desember 2015, Perseroan telah mengkontribusi Rp 55.000 juta terhadap program tersebut.

Starting in February 2015, the Company has a defined contribution pension plan covering its qualified permanent employees, which is managed and administered by PT Asuransi Jiwa Manulife Indonesia. During the year ended 31 December 2015, the Company contributed Rp 55,000 million to the plan.

Tabel berikut mencerminkan saldo liabilitas imbalan kerja pada tanggal pelaporan, mutasi liabilitas, aset program, dan beban yang diakui selama tahun 2015 dan 2014:

The following table reflects the balance of the obligation for post-employment benefits as of the reporting dates, as well as the movements in the obligation, plan asset, and the expense recognized during 2015 and 2014:

Dalam jutaan Rupiah 2015 2014* In millions of Rupiah

Mutasi liabilitas imbalan kerja pasti Movement in the defined benefit

obligation Liabilitas imbalan pasti,

awal tahun 446.447) 393.871) Defined benefit obligation,

beginning of year

Termasuk di laba rugi Included in profit or loss Biaya jasa kini 32.880) 30.324) Current service cost Biaya jasa lalu (79.974) 179) Past service cost Biaya bunga 35.466) 36.508) Interest cost

Termasuk di penghasilan

komprehensif lain Included in other comprehensive

income Kerugian (keuntungan) aktuarial dari: Actuarial losses (gains) from: - asumsi keuangan (25.507) 47.965) financial assumption - - penyesuaian 48.678) (18.838) experience adjustment - Lainnya Other Imbalan yang dibayar (42.056) (43.562) Benefits paid

Liabilitas imbalan pasti, akhir tahun 415.934) 446.447) Defined benefit obligation, end of year

*Disajikan kembali (lihat Catatan 29) *As restated (see Note 29)




27

14. LIABILITAS IMBALAN KERJA 14. EMPLOYEE BENEFITS OBLIGATION (Lanjutan) (Continued)

Dalam jutaan Rupiah 2015 2014* In millions of Rupiah Perubahan aset program Changes in plan asset

Nilai wajar aset program, awal tahun -) -) Fair value of plan asset,beginning

of year

Termasuk di laba rugi Included in profit or loss Pendapatan bunga (811) -) Interest income

Termasuk di penghasilan

komprehensif lain

Included in other comprehensive income

Imbal hasil atas aset program tidak termasuk pendapatan bunga 620) -)

Return on plan asset excluding interest income

Lainnya Others Iuran dari Perseroan (55.000) - Contributions paid by the Company Imbalan yang dibayar 39.933) - Benefits paid

Nilai wajar aset program, akhir tahun (15.258) - Fair value of plan assets, end of year Liabilitas imbalan pasti neto 400.676) 446.447 Net defined benefit obligation

Asumsi utama yang digunakan dalam perhitungan aktuaria adalah sebagai berikut:

Principal assumptions used in the actuarial calculations were as follows:

Dalam jutaan Rupiah 2015 2014 In millions of Rupiah Per annum Per annum Tingkat diskonto 9,00% - 9,30% 8,00% - 8,75% Discount rate Tingkat kenaikan gaji masa depan 7,00% - 7,70% 7,00% - 12,00% Future salary increase rate

Per 31 Desember 2015, durasi rata-rata tertimbang dari liabilitas imbalan pasti berkisar antara 6,40 dan 20,76 tahun (31 Desember 2014: antara 6,38 dan 16,23 tahun).

At 31 December 2015, the weighted average duration of the defined benefit obligation was ranging between 6.40 and 20.76 years (31 December 2014: between 6.38 and 16.23 years).

Tingkat diskonto digunakan dalam menentukan nilai kini liabilitas imbalan kerja pada tanggal penilaian. Secara umum, tingkat diskonto berkorelasi dengan imbal hasil pasar atas bunga obligasi pemerintah yang diperdagangkan di pasar modal aktif pada tanggal pelaporan.

The discount rate is used in determining the present value of the benefit obligation at valuation date. In general, the discount rate correlates with the yield on government bonds that are traded in active capital markets at reporting date.

Asumsi tingkat kenaikan gaji di masa depan memproyeksikan liabilitas imbalan kerja dimulai dari tanggal penilaian sampai dengan usia pensiun normal. Tingkat kenaikan gaji pada umumnya ditentukan dengan memperhitungkan penyesuaian inflasi terhadap tingkat upah dan bertambahnya masa kerja.

The future salary increase assumption projects the benefit obligation starting from the valuation date up to the normal retirement age. The salary increase rate is generally determined by applying inflation adjustments to pay scales and taking account of the length of service.

*Disajikan kembali (lihat Catatan 29) *As restated (see Note 29)




28

14. LIABILITAS IMBALAN KERJA 14. EMPLOYEE BENEFITS OBLIGATION (Lanjutan) (Continued)

Analisa sensitivitas Sensitivity analysis

Kemungkinan adanya perubahan pada tanggal pelaporan terhadap salah satu asumsi aktuarial terkait, dimana asumsi lainnya konstan, akan mempengaruhi liabilitas imbalan pasti sebesar jumlah yang ditunjukkan di bawah ini.

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amount shown below.

2015 Kenaikan/

Increase Penurunan/

Decrease

Tingkat dikonto (pergerakan 1%) (31.306) 36.463) Discount rate (1% movement) Skala gaji (pergerakan 1%) 35.469) (31.086) Salary scale (1% movement)

Walaupun analisa ini tidak memperhitungkan seluruh distribusi arus kas yang diharapkan dari program tersebut, analisa ini menunjukkan prakiraan sensitivitas dari asumsi yang ditampilkan.

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumption shown.

15. MODAL SAHAM 15. SHARE CAPITAL

Modal dasar Perseroan adalah sebesar Rp 300 milyar yang terbagi atas 600.000.000 saham dengan nilai nominal Rp 500 (dalam angka penuh) per saham dan telah ditempatkan dan disetor penuh sejumlah 434.000.000 saham.

The Company's authorized capital amounting to Rp 300 billion consists of 600,000,000 shares at par value of Rp 500 (in full amount) per share, of which 434,000,000 shares have been issued and fully paid-up.

Susunan pemegang saham Perseroan adalah sebagai berikut:

The composition of the Company’s shareholders was as follows:

Pemegang saham Jumlah saham/

Number of shares % kepemilikan/ % of ownership

Jumlah/Amount (dalam jutaan

Rupiah/ In millions of

Rupiah) Shareholders

31 Desember 2015 31 December 2015

Asahi Glass Co., Ltd., Jepang 190.359.000 43,86% 95.180 Asahi Glass Co., Ltd., Japan PT Rodamas, Indonesia 177.758.700 40,96% 88.879 PT Rodamas, Indonesia Tn. Mitsuhiro Yoshikado (Direktur) 20.000 0.00% 10 Mr. Mitsuhiro Yoshikado (Director) Lainnya (masing-masing dengan

kepemilikan kurang dari 5%) 65.862.300 15,18% 32.931 Other (each with ownership

of less than 5%) 434.000.000 100,00% 217.000 31 Desember 2014 31 December 2014

Asahi Glass Co., Ltd., Jepang 190.359.000 43,86% 95.180 Asahi Glass Co., Ltd., Japan PT Rodamas, Indonesia 177.358.500 40,87% 88.679 PT Rodamas, Indonesia Tn. Mitsuhiro Yoshikado (Direktur) 20.000 0.00% 10 Mr. Mitsuhiro Yoshikado (Director) Lainnya (masing-masing dengan

kepemilikan kurang dari 5%) 66.262.500 15,27% 33.131 Other (each with ownership

of less than 5%) 434.000.000 100,00% 217.000




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16. TAMBAHAN MODAL DISETOR 16. ADDITIONAL PAID-IN CAPITAL

Akun ini merupakan agio saham dikurangi dengan biaya emisi saham sebagai berikut:

This account represents premium on share capital net of share issuance costs as follows:

Dalam jutaan Rupiah In millions of Rupiah Agio saham 167.700) Premium on share capital Biaya emisi saham (2.617) Share issuance costs 165.083)

Agio saham berasal dari selisih antara hasil penerimaan dari penawaran umum perdana 86.000.000 saham kepada masyarakat pada tahun 1995 dengan harga Rp 2.450 per saham dengan nilai nominalnya Rp 500 per saham.

Premium on share capital resulted from the difference between proceeds from the initial public offering of 86,000,000 shares in 1995 at a price of Rp 2,450 per share and the par value of the issued shares of Rp 500 per share.

17. PENJUALAN NETO 17. NET SALES

Dalam jutaan Rupiah 2015 2014 In millions of Rupiah Pihak ketiga 840.259 986.929 Unrelated parties Pihak berelasi: Related parties:

AGC Asia Pacific Pte., Ltd., Singapura 1.358.762 1.051.026 AGC Asia Pacific Pte., Ltd., Singapore PT Rodamas, Indonesia 1.306.586 1.394.046 PT Rodamas, Indonesia Asahi Glass Co., Ltd., Jepang 74.184 53.608 Asahi Glass Co., Ltd., Japan Auto Glass Co., Ltd., Jepang 42.711 45.831 Auto Glass Co., Ltd., Japan AGC Automotive Philippines Inc. 30.577 36.055 AGC Automotive Philippines Inc. AGC Automotive China Co., Ltd. 6.290 6.998 AGC Automotive China Co., Ltd. AGC Automotive (Thailand) Co., Ltd. 4.289 3.885 AGC Automotive (Thailand) Co., Ltd. AGC Vidros Do Brasil 1.378 1.965 AGC Vidros Do Brasil PT Auto Glass Indonesia 953 1.114 PT Auto Glass Indonesia Rodamas Marketing Pte., Ltd.,

Singapura

-

90.445 Rodamas Marketing Pte., Ltd.,

Singapore Asahi India Glass Ltd. - 284 Asahi India Glass Ltd.

2.825.730 2.685.257 3.665.989 3.672.186

Tidak terdapat penjualan ke pihak ketiga yang jumlahnya melebihi 10% dari penjualan neto.

There were no sales to unrelated parties that the amount exceeded 10% of net sales.




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18. BEBAN POKOK PENJUALAN 18. COST OF SALES

Dalam jutaan Rupiah 2015 2014 In millions of Rupiah

Beban produksi: Production costs: Bahan baku yang digunakan 1.148.085) 975.636) Raw materials used Kompensasi karyawan 231.188) 327.218) Employees’ compensation Gas alam, listrik dan air 828.954) 751.104) Natural gas, electricity and water Penyusutan aset tetap 200.999) 191.267) Depreciation of fixed assets Beban produksi lainnya 444.151) 522.180) Other production costs

Jumlah beban produksi 2.853.377) 2.767.405) Total production costs

Persediaan awal barang dalam produksi 25.345) 21.694) Beginning balance of goods in production Persediaan akhir barang dalam produksi (24.764) (25.345) Ending balance of goods in production Beban pokok produksi 2.853.958) 2.763.754) Cost of goods manufactured

Persediaan awal barang jadi 329.266) 306.521) Beginning balance of finished goods Pembelian barang jadi 57.306) 19.730) Purchase of finished goods Persediaan akhir barang jadi (371.856) (329.266) Ending balance of finished goods 2.868.674) 2.760.739)

Dalam tahun yang berakhir 31 Desember 2015 dan 2014, Perseroan melakukan pembelian barang dari pihak berelasi, sebagai berikut:

During the years ended 31 December 2015 and 2014, the Company had purchases of inventories from the following related parties:


AGC Soda Corporation, Amerika Serikat 246.229 188.380 AGC Soda Corporation, United States

of America AGC Asia Pacific Pte., Ltd., Singapura 53.620 29.107 AGC Asia Pacific Pte., Ltd., Singapore Asahi Glass Co., Ltd., Jepang 46.188 16.278 Asahi Glass Co., Ltd., Japan AGC Technology Solutions Co., Ltd.,

Jepang 36.197 48.592 AGC Technology Solutions Co., Ltd.,

Japan AGC Technology Solutions (Kunshan) Co.,

Ltd., Cina 30.990 1.457 AGC Technology Solutions (Kunshan) Co.,

Ltd., China AGC Automotive (Thailand) Co., Ltd. 20.901 10.711 AGC Automotive (Thailand) Co., Ltd. AGC Glass Europe, Belgia 12.342 17.508 AGC Glass Europe, Belgium PT Saint Gobain Abrasives Diamas,

Indonesia 9.139 13.776 PT Saint Gobain Abrasives Diamas,

Indonesia AGC Technology Solutions (Thailand) Co. ,

Ltd. 3.352 - AGC Technology Solutions (Thailand) Co. ,

Ltd. AGC Flat Glass (Thailand) Public Co., Ltd. - 4.644 AGC Flat Glass (Thailand) Public Co., Ltd. Pemasok lainnya 2.214 1.061 Other suppliers 461.172 331.514

Tidak terdapat pembelian barang dari pihak ketiga yang jumlahnya melebihi 10% dari total pembelian barang.

There were no purchases of inventories to unrelated parties that the amount exceeded 10% of total purchases of inventories.




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19. BEBAN PENJUALAN 19. SELLING EXPENSES


Pengiriman dan pengangkutan 160.416 152.859 Delivery and transportation Kompensasi karyawan 94.326 81.510 Employees’ compensation Royalti (pihak berelasi, Catatan 25) 34.864 37.785 Royalties (related parties, Note 25) Kaca otomotif yang pecah selama

pengiriman 15.853 6.164 Broken automotive glass during

delivery Perbaikan dan perlengkapan lainnya 11.423 9.178 Repair and sundry supplies Penyusutan aset tetap 8.136 6.212 Depreciation of fixed assets Insentif dan komisi penjualan 2.461 8.099 Sales incentives and commissions Lainnya 29.196 36.385 Other 356.675 338.192

20. BEBAN UMUM DAN ADMINISTRASI 20. GENERAL AND ADMINISTRATIVE EXPENSES


Kompensasi karyawan 38.191 30.855 Employees’ compensation Penyusutan aset tetap 2.766 3.660 Depreciation of fixed assets Listrik, air dan telepon 2.137 1.459 Electricity, water and telephone Perbaikan dan perlengkapan lainnya 736 473 Repair and sundry supplies Lainnya 7.807 6.445 Other 51.637 42.892

21. PERPAJAKAN 21. TAXATION

a. Pajak dibayar dimuka terdiri dari: a. Prepaid taxes consist of:


Lebih bayar pajak penghasilan badan

tahun 2006 1.695 1.695 Overpayment of 2006

corporate income tax Pajak Pertambahan Nilai 16.919 10.996 Value Added Tax 18.614 12.691




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21. PERPAJAKAN (Lanjutan) 21. TAXATION (Continued)

a. Pajak dibayar dimuka terdiri dari: (Lanjutan) a. Prepaid taxes consist of: (Continued)

Pada tahun 2008, kantor pajak mengeluarkan surat kurang bayar atas pajak penghasilan badan Perseroan untuk tahun pajak 2006 sejumlah Rp 5,5 milyar. Perseroan mengajukan banding atas jumlah sebesar Rp 1.695 juta yang ditolak oleh pengadilan pajak pada tahun 2009, dan pengajuan pada tahun 2010 untuk peninjauan kembali ke Mahkamah Agung belum selesai sampai dengan tanggal pelaporan. Pembayaran yang dilakukan terhadap keberatan ini dicatat sebagai pajak dibayar dimuka, karena manajemen berkeyakinan bahwa posisi pajak Perseroan dapat dipertahankan.

In 2008, the tax authority assessed additional taxes on the Company’s 2006 corporate income tax return amounting to Rp 5.5 billion. The Company’s appeal for the amount of Rp 1,695 million was denied by the tax court in 2009, and its request in 2010 for a judicial review by the Supreme Court continues to be pending as of the reporting date. Payments made under protest towards this assessment are presented as prepaid taxes, as management believes the Company’s tax position is sustainable.

b. Utang pajak penghasilan terdiri dari: b. Income tax payable consist of:


Pajak Penghasilan pasal 25 9.022 11.032) Income tax-article 25 Pajak Penghasilan pasal 29 - 4.158) Income tax-article 29 9.022 15.190)

c. Utang pajak lainnya terdiri dari: c. Other tax payable consist of:


Pajak Penghasilan pasal 21 7.064 6.414 Income tax-article 21 Pajak Penghasilan pasal 23, 26 dan 4(2) 2.573 3.851 Income tax-articles 23, 26 and 4(2) 9.637 10.265

d.... Komponen beban pajak penghasilan adalah sebagai

berikut: d. The components of income tax expense are as follows:


Pajak kini (102.422) (141.238) Current Penyesuaian beban pajak tahun-tahun

sebelumnya (9.971) -) Adjustment to previous years’ tax

expenses Pajak tangguhan (10.524) 227) Deferred (122.917) (141.011)

e.....Rekonsiliasi beban pajak penghasilan dengan laba

sebelum pajak penghasilan adalah sebagai berikut: e. Income tax expense is reconciled with profit before

income tax as follows:


Laba sebelum pajak penghasilan 464.263) 605.163) Profit before income tax Tarif pajak yang berlaku 25%) 25%) Statutory tax rate 116.066) 151.291) Perbedaan permanen dikalikan Permanent differences

dengan tarif pajak 25% (2.704) (9.694) at 25% tax rate Penyesuaian beban pajak tahun-tahun

sebelumnya 9.971) -) Adjustment to previous years’ tax

expenses Penyesuaian lainnya (416) (586) Other adjustments Beban pajak 122.917) 141.011) Income tax expense




33


f. . Rekonsiliasi antara laba sebelum pajak dengan laba kena pajak adalah sebagai berikut:

f. The following reconciles profit before tax with taxable profit:

Dalam jutaan Rupiah 2015 2014 In millions of Rupiah Laba sebelum pajak 464.263) 605.163) Profit before tax Perbedaan permanen: Permanent differences:

Kesejahteraan karyawan 23.545) 19.540) Employee benefits in-kind Hasil pemeriksaan pajak 3) 2.352) Tax assessment Laba penjualan tanah yang

dimiliki untuk dijual -) (20.499) Gain on sales of land held

for sale Pendapatan bunga yang

dikenakan pajak final

(35.768)

(42.040) Interest income subject to

final tax Lainnya 1.406) 1.871) Other (10.814) (38.776)

Perbedaan temporer: Temporary differences:

Penyusutan aset tetap 25.801) (24.883) Depreciation of fixed assets Imbalan kerja (69.564) 23.448) Employee benefits (43.763) (1.435)

Laba kena pajak 409.686) 564.952) Taxable profit

Laba kena pajak Perseroan tahun 2014 telah sesuai dengan SPT Tahunan Pajak Penghasilan tahun yang bersangkutan.

The amount of 2014 taxable profit corresponds with the amount reported in the related annual corporate tax return.

Rekonsiliasi utang pajak penghasilan dengan beban pajak kini, sebagai berikut:

Income tax payable is reconciled with current tax expense, as follows:

Dalam jutaan Rupiah 2015 2014 In millions of Rupiah Beban pajak kini 102.422) 141.238) Current tax expense Pajak dibayar dimuka: Prepaid taxes:

Pajak Penghasilan pasal 22 (24.654) (18.565) Income tax article 22 Pajak Penghasilan pasal 25 (112.175) (118.515) Income tax article 25

(136.829) (137.080)

(Lebih) kurang bayar pajak penghasilan kini (34.407) 4.158)

(Overpayment) underpayment of current income tax

Utang pajak penghasilan badan

(pasal 29) -) 4.158) Corporate income tax payable

(article 29)




34


g. Saldo pajak tangguhan yang diakui, dan mutasi

sepanjang tahun berjalan adalah sebagai berikut: g. The recognized deferred tax balances, and the movement

thereof during the year were as follows:

Dalam jutaan Rupiah

2014

Diakui dalam laba

rugi/ Recognized in profit or

loss

Diakui dalam penghasilan

komprehensif lain/Recognized in

other comprehensive income

2015

In millions of Rupiah Aset pajak tangguhan: Deferred tax assets:

Liabilitas imbalan kerja 111.612) (17.391) 5.948 100.169) Employee benefits obligation Investasi pada metode ekuitas 115) -) - 115) Equity-accounted investment

111.727) (17.391) 5.948 100.284) Liabilitas pajak tangguhan: Deferred tax liabilities:

Aset tetap (31.119) 6.867) - (24.252) Fixed assets Aset tidak lancar lainnya (654) -) - (654) Other non-current assets

(31.773) 6.867) - (24.906)

Aset pajak tangguhan 79.954) (10.524) 5.948 75.378) Deferred tax assets

Dalam jutaan Rupiah

2013

Diakui dalam laba

rugi/ Recognized in profit or

loss

Diakui dalam penghasilan

komprehensif lain/Recognized in

other comprehensive income

2014

In millions of Rupiah Aset pajak tangguhan: Deferred tax assets:

Liabilitas imbalan kerja 98.468) 5.862) 7.282 111.612) Employee benefits obligation Investasi pada metode ekuitas 115) -) - 115) Equity-accounted investment

98.583) 5.862) 7.282 111.727) Liabilitas pajak tangguhan: Deferred tax liabilities:

Aset tetap (25.484) (5.635) - (31.119) Fixed assets Aset tidak lancar lainnya (654) -) - (654) Other non-current assets

(26.138) (5.635) - (31.773)

Aset pajak tangguhan 72.445) 227) 7.282 79.954) Deferred tax assets

Realisasi dari aset pajak tangguhan tergantung pada laba yang diperoleh Perseroan dalam operasinya. Berdasarkan pengalaman masa lampau, manajemen berpendapat bahwa laba kena pajak Perseroan di masa yang akan datang cukup untuk memulihkan manfaat dari aset pajak tangguhan.

Realization of the deferred tax assets is dependent upon the Company’s profitable operations. Based on historical experience, management believes that the Company’s future taxable income will be sufficient to realize the benefit of deferred tax assets.




35


h.. Sesuai peraturan perpajakan di Indonesia, Perseroan melaporkan/menyetorkan pajak-pajaknya berdasarkan sistem self-assessment. Fiskus dapat menetapkan/ mengubah pajak-pajak tersebut dalam batas waktu yang ditentukan sesuai dengan ketentuan yang berlaku.

h. Under the taxation laws of Indonesia, the Company submits tax returns on the basis of self-assessment. The tax authorities may assess or amend taxes within the statute of limitations, under prevailing regulations.

Manajemen berkeyakinan bahwa akrual atas liabilitas pajak cukup untuk semua tahun pajak yang masih belum diaudit pajak berdasarkan penelaahan banyak faktor, termasuk interpretasi dari peraturan pajak dan pengalaman sebelumnya. Penilaian dilakukan berdasarkan estimasi dan asumsi dan melibatkan pertimbangan mengenai kejadian di masa mendatang. Informasi baru yang tersedia yang menyebabkan manajemen mengubah pertimbangannya berkaitan dengan kecukupan liabilitas pajak yang telah ada. Perubahan terhadap liabilitas pajak akan berdampak pada beban pajak pada periode dimana penentuan tersebut ditetapkan.

Management believes that the accruals for tax liabilities are adequate for all open tax years based on its assessment of various factors, including interpretations of tax law and prior experience. The assessment relies on estimates and assumptions and may involve judgement about future events. New information may become available that causes management to change its judgment regarding the adequacy of existing tax liabilities. Such changes to tax liabilities will impact tax expense in the period in which such determination is made.

22. LABA PER SAHAM 22. EARNINGS PER SHARE

2015 2014 Laba tahun berjalan (dalam jutaan Rupiah) 341.346 464.152 Profit for the year (in millions of Rupiah) Jumlah rata-rata tertimbang saham beredar/

ditempatkan

434.000.000

434.000.000 Weighted average number of outstanding/

issued shares Laba tahun berjalan per saham Rp 786 Rp 1.069 Earnings per share

23. DIVIDEN TUNAI 23. CASH DIVIDENDS

Rapat Umum pemegang saham tahunan Perseroan tanggal 5 Juni 2015 (risalah dibuat oleh notaris Dr. Irawan Soerodjo, S.H., MSi, dengan akta No. 42) memutuskan untuk membagikan dividen tunai sejumlah Rp 34.720 juta [Rp 80 per saham].

At the annual general meeting of shareholders of the Company on 5 June 2015 (minutes prepared by Dr. Irawan Soerodjo, S.H., MSi, by deed No. 42) it was resolved to declare cash dividends in the amount of Rp 34,720 million [Rp 80 per share].

Rapat Umum pemegang saham tahunan Perseroan tanggal 20 Juni 2014 (risalah dibuat oleh notaris Dr. Irawan Soerodjo, S.H., MSi, dengan akta No. 502) memutuskan untuk membagikan dividen tunai sejumlah Rp 34.720 juta [Rp 80 per saham].

At the annual general meeting of shareholders of the Company on 20 June 2014 (minutes prepared by Dr. Irawan Soerodjo, S.H., MSi, by deed No. 502) it was resolved to declare cash dividends in the amount of Rp 34,720 million [Rp 80 per share].




36

24. CADANGAN WAJIB 24. STATUTORY RESERVES

Sesuai ketentuan Undang-undang Perseroan Terbatas No..1 tahun 1995 dan No. 40 tahun 2007, perseroan diwajibkan untuk menyisihkan secara bertahap jumlah tertentu dari laba neto sebagai cadangan wajib sampai cadangan tersebut mencapai paling sedikit 20% dari jumlah modal yang ditempatkan.

In accordance with the provisions of the Corporate Laws No. 1 of 1995 and No. 40 of 2007, a company is required to set aside, on a gradual basis, an amount from its net profit as a statutory reserve until the reserve balance reaches the minimum 20% of its issued capital.

Pada tanggal 5 Juni 2015 (Catatan 23) pemegang saham memutuskan untuk menambah dana cadangan wajib sebesar Rp 4.500 juta.

On 5 June 2015 (Note 23) the shareholders resolved to increase the statutory reserves appropriation by Rp 4,500 million.

Pada tanggal 20 Juni 2014 (Catatan 23) pemegang saham memutuskan untuk menambah dana cadangan wajib sebesar Rp 3.500 juta.

On 20 June 2014 (Note 23) the shareholders resolved to increase the statutory reserves appropriation by Rp 3,500 million.

Jumlah cadangan wajib pada tanggal 31 Desember 2015 dan 2014 masing-masing sebesar Rp 79.000 juta dan Rp 74.500 juta atau 36% dan 34% dari jumlah modal yang ditempatkan dan disetor penuh.

Total statutory reserves as of 31 December 2015 and 2014 amounted to Rp 79,000 million and Rp 74,500 million, respectively, or approximately 36% and 34% of the issued and fully paid-up capital.

25. INFORMASI MENGENAI PIHAK 25. RELATED PARTY INFORMATION ..BERELASI

a. Ikhtisar transaksi dan saldo yang signifikan dengan pihak-pihak berelasi adalah sebagai berikut:

a. Summary of significant transactions and balances with related parties is as follows:

2015

Pemegang saham/ Shareholders

Entitas sepengendalian/ Entities under common

control Entitas anak/ Subsidiary

Dalam jutaan Rupiah Jumlah/Amount %*** Jumlah/Amount %*** Jumlah/Amount %*** In millions of Rupiah Penjualan neto (Catatan 17) 1.380.770 37,66 1.444.007 39,39 953 0,03 Net sales (Note 17) Pembelian persediaan (Catatan 18) 46.188

3,26 414.984

29,31 - -

Purchases of inventories (Note 18)

Beban penjualan (Catatan 19) 27.497 7,71 7.367 2,07 - - Selling expenses (Note 19) Saldo piutang usaha

(Catatan 5) 104.945 29,69 153.092 43,31 408 0,12 Balance of trade receivables

(Note 5) Saldo piutang lainnya

(Catatan 6) 581 1,13 620 1,20 - - Balance of other receivables

(Note 6) Pembelian aset tetap (Catatan 10) 89.039

17,45 20.031

3,93 - -

Purchases of fixed assets (Note 10)

Saldo utang usaha (Catatan 11) 2.305 0,83 52.053 18,72 - -

Balance of trade payables (Note 11)

Saldo beban akrual (Catatan 12) 6.908 4,99 2.975 2,15 - -

Balance of accrued expenses (Note 12)

Saldo liabilitas jangka pendek lainnya (Catatan 13) 7.932 17,94 - 0,00 - -

Balance of other current liabilities (Note 13)

*** Persentase terhadap jumlah aset/liabilitas/ .. ..penjualan/pembelian/beban yang bersangkutan.

*** Percentage to the respective total assets/ ..liabilities/sales/purchases/expenses.




37

25. INFORMASI MENGENAI PIHAK 25. RELATED PARTY INFORMATION ..YANG BERELASI (Lanjutan) (Continued)

2014

Pemegang saham/ Shareholders

Entitas sepengendalian/ Entities under common

control Entitas anak/ Subsidiary

Dalam jutaan Rupiah Jumlah/Amount %*** Jumlah/Amount %*** Jumlah/Amount %*** In millions of Rupiah Penjualan neto (Catatan 17) 1.447.654 39,42 1.236.489 33,67 1.114 0,03 Net sales (Note 17) Pembelian persediaan (Catatan 18) 16.278

1,15 315.236

22,29 - -

Purchases of inventories (Note 18)

Beban penjualan (Catatan 19) 27.950 8,26 14.374 4,25 - - Selling expenses (Note 19) Saldo piutang usaha

(Catatan 5) 116.301 32,83 146.772 41,43 351 0,10 Balance of trade receivables

(Note 5) Saldo piutang lainnya

(Catatan 6) 282 0,96 1.872 6,34 - - Balance of other receivables

(Note 6) Pembelian aset tetap (Catatan 10) 8.743

3,40 12.828

4,99 - -

Purchases of fixed assets (Note 10)

Saldo utang usaha (Catatan 11) 2.843 1,16 23.244 9,47 - -

Balance of trade payables (Note 11)

Saldo beban akrual (Catatan 12) 5.766 5,70 6.830 6,76 - -

Balance of accrued expenses (Note 12)

Saldo liabilitas jangka pendek lainnya (Catatan 13) - - 2.071 7,93 - -

Balance of other current liabilities (Note 13)

*** Persentase terhadap jumlah aset/liabilitas/ ..

..penjualan/pembelian/beban yang bersangkutan. *** Percentage to the respective total assets/

.liabilities/sales/purchases/expenses.

b. Kompensasi personil manajemen kunci b. Key management employees compensation

Personil manajemen kunci termasuk anggota Dewan Komisaris dan Direksi. Berikut ini mencerminkan kompensasi yang dibayarkan atau terutang kepada personil manajemen kunci:

Key management includes members of the Boards of Commissioners and Directors. The following reflects compensation paid or payable to key management personnel:

Dalam jutaan Rupiah 2015 2014 In millions of Rupiah Dewan komisaris: Board of commissioners:

Gaji dan imbalan kerja lainnya 3.510 2.908 Salary and other benefits

Direksi: Directors: Gaji dan imbalan kerja lainnya 26.197 25.115 Salary and other benefits

c. Pada tanggal 31 Desember 2015 dan 2014, Perseroan memiliki perjanjian kontraktual dengan pihak berelasi sebagai berikut:

c. At 31 December 2015 and 2014, the Company had the following contractual arrangements with related parties:

Perseroan memperoleh fasilitas kredit modal kerja dari The Bank of Tokyo – Mitsubishi UFJ Ltd., Jakarta dan Mizuho Corporate Bank Ltd., Singapura (tidak ada saldo pinjaman bank pada tanggal 31 Desember 2015 dan 2014). Fasilitas pinjaman ini sebagian dijamin oleh AGC. Sebagai jaminan untuk AGC, Perseroan menjaminkan hak atas tanah (HGB) yang terletak di Jakarta Utara seluas 154.436 meter persegi, di Cikampek seluas 189.285 meter persegi dan di Sidoarjo seluas 447.113 meter persegi, berikut bangunan di atasnya. Perseroan membayar biaya penjaminan kepada AGC sebesar 0,5% per tahun dari jumlah saldo pinjaman bank yang dijamin oleh AGC. Tidak terdapat biaya penjaminan untuk tahun yang berakhir 31 Desember 2015 dan 2014.

The Company has obtained working capital loan facilities from The Bank of Tokyo – Mitsubishi UFJ Ltd., Jakarta and Mizuho Corporate Bank Ltd., Singapore (no outstanding bank loan as of 31 December 2015 and 2014). This facility is partially guaranteed by AGC. As collateral for AGC, the Company pledged its HGB land rights located in North Jakarta of 154,436 square meters, in Cikampek of 189,285 square meters and in Sidoarjo of 447,113 square meters, including buildings thereon. The Company pays a guarantee fees to AGC at the rates of 0.5% annually of total outstanding bank loans secured by AGC. No guarantee fees incurred for the years ended 31 December 2015 and 2014.




38

25. INFORMASI MENGENAI PIHAK 25. RELATED PARTY INFORMATION ..YANG BERELASI (Lanjutan) (Continued)

c. Pada tanggal 31 Desember 2015 dan 2014, Perseroan memiliki perjanjian kontraktual dengan pihak berelasi sebagai berikut: (Lanjutan)

c. At 31 December 2015 and 2014, the Company had the following contractual arrangements with related parties: (Continued)

Perseroan memiliki perjanjian lisensi dengan Asahi Glass Co., Ltd., Jepang masing-masing untuk produksi kaca lembaran, kaca tempered, modular assembly window dan kaca laminated, dan Perseroan membayar royalti sebesar 0,5% sampai dengan 2,5% dari jumlah penjualan neto. Perjanjian-perjanjian ini berakhir di periode antara Mei 2015 sampai dengan Maret 2019, dan salah satu perjanjian akan diperpanjang secara otomatis untuk periode setiap satu tahun selanjutnya. Jumlah royalti untuk tahun yang berakhir 31 Desember 2015 sebesar Rp.27.497 juta (2014: Rp 27.950 juta).

The Company has licensing agreements with Asahi Glass Co., Ltd., Japan each to produce flat glass, tempered glass, modular assembly window and laminated glass, under which the Company pays royalties of 0.5% to 2.5% of total net sales. These agreements expire in periods between May 2015 until March 2019, and one of which will be automatically extended for additional consecutive period of one year each. Total royalties incurred for the year ended 31 December 2015 amounted to Rp 27,497 million (2014: Rp 27,950 million).

Perseroan memiliki perjanjian lisensi dengan AGC Glass Europe, Belgia dimana Perseroan memproduksi dan menjual produk cermin yang disebut Mirror New Generation (“MNG”). Sesuai dengan perjanjian ini, Perseroan membayar royalti sebesar USD 0,075 per meter persegi untuk semua penjualan produk MNG oleh Perseroan. Jumlah royalti untuk tahun yang berakhir 31 Desember 2015 sebesar Rp 604 juta (2014: Rp 1.557 juta). Perjanjian ini telah berakhir pada tanggal 11 Mei 2015. Dan juga, Perseroan mendapatkan lisensi guna memproduksi dan menjual produk-produk CVD Coated Glass (CVD CGP). Atas perjanjian lisensi ini, Perseroan membayar royalti sebesar 4% dari jumlah penjualan neto CVD CGP. Perjanjian ini akan berakhir dua belas tahun sejak pertama kali CVD CGP dijual (Agustus 2009). Jumlah royalti untuk tahun yang berakhir 31 Desember 2015 sebesar Rp 6.763 juta (2014: Rp 8.278 juta).

The Company has a licensing agreement with AGC Glass Europe, Belgium under which the Company manufactures and sells a mirror product called Mirror New Generation (“MNG”). Under this agreement, the Company pays royalties of USD 0.075 per square meter for all MNG products sold by the Company. Total royalties incurred for the year ended 31 December 2015 amounted to Rp 604 million (2014: Rp 1,557 million). This agreement has expired on 11 May 2015. In addition, the Company also obtain a license to manufacture and sell CVD Coated Glass Products (CVD CGP). Under this agreement, the Company pays royalties at 4% of net sales of CVD CGP. This agreement will expire twelve years from when the first CVD CGP was sold (August 2009). Total royalties incurred for the year ended 31.December 2015 amounted to Rp 6,763 million (2014: Rp 8,278 million).

Perseroan memiliki perjanjian pemasaran dengan Rodamas Marketing Pte., Ltd., Singapura (“RDM-S”, pihak berelasi), dan membayar komisi agen penjualan kepada RDM-S sebesar 5% dari harga FOB dari produk yang dijual ke pelanggan. Jumlah komisi penjualan untuk tahun yang berakhir 31 Desember 2014 sebesar Rp 4.539 juta. Perjanjian ini telah berakhir pada tanggal 1 Oktober 2014.

The Company has a marketing agreement with Rodamas Marketing Pte., Ltd., Singapore (“RDM-S”, a related party), under which it pays agency commission to RDM-S at 5% of the FOB price of product sold to customers. Total commission fees incurred for the year ended 31 December 2014 amounted to Rp 4,539 million. This agreement expired on 1 October 2014

Pada tanggal 1 September 2014, Perseroan telah menandatangani perjanjian dengan Asahi Glass Co., Ltd., Jepang untuk pembangunan pabrik baru Perseroan yang terletak di Cikampek, Jawa Barat, Indonesia, yang dimulai pada akhir 2014, dan diperkirakan akan selesai pada pertengahan 2016. Jumlah investasi diperkirakan sebesar USD 154.936.370, sebagaimana dinyatakan di Surat Keterbukaan Informasi kepada OJK dan BEI pada tanggal 3 September 2014. Perseroan akan membayar kepada Asahi Glass Co., Ltd., Jepang, biaya konsultasi sebesar 6% dari biaya pembangunan.

On 1 September 2014, the Company entered into an agreement with Asahi Glass Co., Ltd., Japan for construction of the Company’s new factory in Cikampek, West Java, Indonesia, that started in late 2014, and is expected to finish in mid of 2016. The investment is estimated to be USD 154,936,370, which was declared in the Disclosure of Information to OJK and BEI on 3 September 2014. The Company will pay to Asahi Glass Co., Ltd., Japan, a consulting fee of 6% of the construction expenditure.




39

25. SALDO DAN TRANSAKSI DENGAN PIHAK 25. BALANCES AND TRANSACTIONS YANG BERELASI (Lanjutan) WITH RELATED PARTIES (Continued)

d. Sifat hubungan dan jenis transaksi dengan pihak-

pihak berelasi adalah sebagai berikut: d. The nature of the relationship and transactions with

related parties is as follows:

Pihak-pihak berelasi/Related parties

Hubungan relasi/Related parties relationship

Transaksi/Transaction

Asahi Glass Co., Ltd., Jepang/Japan Pemegang saham/Shareholder Penjualan, pembelian persediaan, aset

tetap dan royalti/Sales, purchase of inventories, fixed assets and royalty

PT Rodamas, Indonesia Pemegang saham/Shareholder Pembelian aset tetap dan penjualan/ Purchase of fixed assets and sales

AGC Glass Europe, Belgia/Belgium Entitas sepengendalian/ Entity under common control

Pembelian persediaan dan royalti/ Purchase of inventories and royalty

AGC Flat Glass (Thailand) Public Co., Ltd.

Entitas sepengendalian/ Entity under common control

Pembelian persediaan/Purchase of inventories

AGC Technology Solutions Co., Ltd., Jepang/Japan


Pembelian persediaan dan aset tetap/ Purchase of inventories and fixed assets

AGC Soda Corporation, Amerika Serikat/United States of America



AGC Automotive (Thailand) Co., Ltd. Entitas sepengendalian/ Entity under common control

Penjualan, pembelian persediaan dan aset tetap/Sales, purchase of inventories and fixed assets

AGC Asia Pacific Pte., Ltd., Singapura/Singapore


Penjualan dan pembelian persediaan/ Sales and purchase of inventories

PT Saint Gobain Abrasives Diamas, Indonesia



Rodamas Marketing Pte., Ltd., Singapura/Singapore


Penjualan dan komisi penjualan/Sales and sales commission

Auto Glass Co., Ltd., Jepang/Japan Entitas sepengendalian/ Entity under common control

Penjualan /Sales

Asahi India Glass Ltd. Entitas sepengendalian/ Entity under common control

Penjualan dan pembelian persediaan/ Sales and purchase of inventories

AGC Automotive China Co., Ltd. Entitas sepengendalian/ Entity under common control

Penjualan/Sales

AGC Automotive Phillipines Inc. Entitas sepengendalian/ Entity under common control

Penjualan/Sales

AGC Vidros Do Brasil Ltd. Entitas sepengendalian/ Entity under common control

Penjualan/Sales

AGC Technology Solutions (Kunshan) Co., Ltd., Cina/China



AGC Technology Solutions (Thailand) Co., Ltd.


Pembelian persediaan dan aset tetap/Purchase of inventories and fixed assets

PT Auto Glass Indonesia Entitas anak/Subsidiary Penjualan/Sales




40

26. ASET DAN LIABILITAS DALAM 26. ASSETS AND LIABILITIES IN VALUTA ASING FOREIGN CURRENCIES

Aset dan liabilitas dalam valuta asing pada tanggal 31 Desember 2015 dan 2014 adalah sebagai berikut :

Assets and liabilities in foreign currencies as of 31 December 2015 and 2014 were as follows:

2015 Valuta Setara asing/ dengan/ Foreign currencies Equivalent in ASET Rp juta/million ASSETS Kas dan setara kas USD 39.033.227 538.463 Cash and cash equivalents

JPY 23.066.057 2.641 Lainnya/Other 9 Piutang usaha USD 11.282.308 155.639 Trade receivables

JPY 23.960.209 2.744 AUD 551.668 5.552

Jumlah aset 705.048 Total assets LIABILITAS LIABILITIES Utang usaha USD 9.117.197 125.772 Trade payables

JPY 90.098.954 10.318 EUR 531.179 8.005 Lainnya/Other 1.223

Beban akrual USD 266.605 3.678 Accrued expenses JPY 2.181.671 250 EUR 14.790 223 Liabilitas jangka pendek lainnya USD 10.228 141 Other current liabilities JPY 74.077.087 8.483 Jumlah liabilitas 158.093 Total liabilities JUMLAH ASET NETO 546.955 TOTAL ASSETS, NET




41

26. ASET DAN LIABILITAS DALAM 26. ASSETS AND LIABILITIES IN VALUTA ASING (Lanjutan) FOREIGN CURRENCIES (Continued)

2014 Valuta Setara asing/ dengan/ Foreign currencies Equivalent in ASET Rp juta/million ASSETS Kas dan setara kas USD 32.402.266 403.084 Cash and cash equivalents

JPY 3.624.959 378 Lainnya/Other 6 Piutang usaha USD 11.706.507 145.629 Trade receivables

JPY 21.023.557 2.192 AUD 853.832 8.724

Jumlah aset 560.013 Total assets LIABILITAS LIABILITIES Utang usaha USD 7.666.002 95.365 Trade payables

JPY 86.737.415 9.042 EUR 655.096 9.913 Lainnya/Other 2.490

Beban akrual USD 1.159.295 14.422 Accrued expenses JPY 17.580.138 1.833 EUR 201 3 Liabilitas jangka pendek lainnya USD 34.630 431 Other current liabilities JPY 12.004.936 1.252 Lainnya/Other 61 Jumlah liabilitas 134.812 Total liabilities JUMLAH ASET NETO 425.201 TOTAL ASSETS, NET

Penjabaran ke dalam rupiah dilakukan dengan menggunakan kurs tengah Bank Indonesia yang berlaku pada tanggal pelaporan (Catatan 28).

The amounts were translated into rupiah at the middle rates of exchange quoted by Bank Indonesia at the reporting date (Note 28).




42

27. INFORMASI SEGMEN 27. SEGMENT INFORMATION

Segmen usaha Business segments

Perseroan menjalankan dua segmen kegiatan usaha, yaitu segmen usaha kaca lembaran dan segmen usaha kaca otomotif. Masing-masing segmen dipimpin oleh seorang Direktur.

The Company has two business segments, namely flat glass segment and automotive glass segment. Each segment is headed by a Director.

Segmen kaca lembaran memproduksi berbagai jenis kaca polos, kaca berpola, kaca reflektif dan kaca cermin, yang terutama digunakan sebagai partisi pembatas, kaca jendela, kaca untuk konstruksi bangunan dan sebagai bahan baku untuk industri hilir.

The flat glass segment produces a broad range of clear and tinted glass, figured glass, reflective glass and mirror glass, which are used primarily for glass curtain walls, window glass, suspended glass in building construction and as raw materials for downstream industry.

Segmen kaca otomotif memproduksi dua jenis utama kaca otomotif, yaitu kaca tempered dan kaca laminated, yang terutama digunakan dalam industri otomotif.

The automotive glass segment produces two main types of automotive glass, tempered glass and laminated glass, which are primarily used in the automotive industry.

Hasil dari operasi tiap segmen usaha adalah sebagai berikut (dalam jutaan Rupiah):

The results of operations of each segment are disclosed below (in millions of Rupiah):

Kaca Otomotif/ Kaca Lembaran/Flat Glass Automotive Glass Eliminasi/Elimination Jumlah/Total

2015 2014 2015 2014 2015 2014 2015 2014* Penjualan neto: Net sales:

Eksternal 2.665.348 2.535.516) 1.000.641 1.136.670) -) -) 3.665.989) 3.672.186) External Antar segmen 199.736 219.917) - -) (199.736) (219.917) -) -) Inter segment

Jumlah penjualan

neto 2.865.084 2.755.433) 1.000.641 1.136.670) (199.736) (219.917) 3.665.989) 3.672.186) Total net sales Beban pokok

penjualan (2.868.674) (2.760.739)

Cost of sales Laba bruto 797.315) 911.447) Gross profit Beban lainnya (8.070) (1.819) Other expense Beban penjualan (356.675) (338.192) Selling expenses Beban umum dan

administrasi (51.637) (42.892)

General and administrative

expenses Keuntungan selisih

kurs, bersih 47.558) 12.950) Foreign exchange gain,

net Pendapatan lainnya 201) 21.500) Other income Laba usaha 428.692) 562.994) Operating profit Pendapatan keuangan 35.571) 42.169) Finance income

Laba sebelum pajak 464.263) 605.163) Profit before tax

* Disajikan kembali (lihat Catatan 29) * As restated (see Note 29)




43

27. INFORMASI SEGMEN (Lanjutan) 27. SEGMENT INFORMATION (Continued)

Kaca Otomotif/ Kaca Lembaran/Flat Glass Automotive Glass Eliminasi/Elimination Jumlah/Total

2015 2014* 2015 2014* 2015 2014 2015 2014* Informasi lainnya Other information Aset segmen 3.305.477 3.113.046 836.399 740.434 - - 4.141.876 3.853.480 Segment assets Aset yang tidak

dialokasikan - - - - - - 128.399 92.645 Unallocated corporate

assets Jumlah aset 4.270.275 3.946.125 Total assets

Liabilitas segmen 665.817 648.851 195.576 170.379 - - 861.393 819.230 Segment liabilities Liabilitas yang tidak

dialokasikan - - - - 18.659 25.455 Unallocated corporate

liabilities Jumlah liabilitas 880.052 844.685 Total liabilities

Aset dan liabilitas segmen tidak mencakup aset dan liabilitas pajak.

Segment assets and liabilities do not include tax assets and liabilities.

Segmen geografis Geographical segments

a. Perseroan menjual barangnya pada pasar domestik

dan global. Di Indonesia, operasi Perseroan dilakukan di tiga wilayah geografis utama: Jakarta, Cikampek dan Sidoarjo.

a. The Company sells its goods in the domestic and global markets. In Indonesia, the Company operates in three principal geographical areas: Jakarta, Cikampek and Sidoarjo.

Di Jakarta, tempat kantor pusat berada, Perseroan memproduksi dan menjual berbagai jenis produk kaca lembaran.

In Jakarta, where the head office is located, the Company produces and sells a broad range of flat glass products.

Operasi di Sidoarjo pada dasarnya sama dengan yang di Jakarta, yaitu memproduksi dan menjual berbagai jenis produk kaca lembaran, terutama produk kaca lembaran berkualitas tinggi.

Operations in Sidoarjo are essentially similar to those in Jakarta, which consist of manufacturing and selling a broad range of flat glass products, especially high quality ones.

Aktivitas operasi dan produksi segmen kaca otomotif dijalankan di Bukit Indah Industrial Park, Cikampek.

The operations and production activities of the automotive glass segment are carried out in Bukit Indah Industrial Park, Cikampek.

b. Informasi berikut menunjukkan distribusi dari penjualan Perseroan tanpa memperhatikan tempat diproduksinya barang:

b. The following information shows the distribution of sales of the Company regardless of where the goods were produced:


Indonesia 2.140.781 2.375.095 Indonesia Asia 1.294.105 1.056.622 Asia Australia dan Selandia Baru 164.079 147.211 Australia and New Zealand Timur Tengah 53.209 43.713 Middle East Amerika 11.772 28.862 America Afrika 2.043 20.683 Africa

3.665.989 3.672.186

* Disajikan kembali (lihat Catatan 29) * As restated (see Note 29)




44

28. INSTRUMEN KEUANGAN DAN 28. FINANCIAL INSTRUMENT AND MANAJEMEN RISIKO KEUANGAN FINANCIAL RISK MANAGEMENT

Instrumen keuangan Financial instruments Nilai tercatat dari aset keuangan yang diakui sebesar biaya perolehan diamortisasi dalam laporan keuangan lebih kurang sama dengan nilai wajarnya karena instrumen keuangan tersebut berjangka waktu pendek.

The carrying amounts of financial assets that are recognized at amortized cost in the financial statements approximate their fair value because substantially all of the instruments are short-term in nature.

Manajemen risiko keuangan Financial risk management Risiko utama yang timbul dari instrumen keuangan Perseroan adalah risiko kredit dan risiko mata uang yang timbul dari kegiatan normal.

The main risks arising from the Company’s financial instruments are credit and currency risks that arises in the normal course of business.

Manajemen berpendapat bahwa risiko likuiditas minimal, dengan mempertimbangkan bahwa Perseroan memiliki kas dan setara kas yang cukup untuk membayar liabilitas jangka pendek Perseroan pada tanggal 31 Desember 2015.

Management in view that liquidity risk is minimal, considering that the Company has sufficient cash and cash equivalents to cover the Company’s current liabilities as of 31 December 2015.

Risiko kredit Credit risk Manajemen memiliki kebijakan kredit yang ditetapkan untuk setiap pelanggan dan risiko kredit dipantau secara berkelanjutan dengan mengevaluasi kolektibilitas dari masing-masing saldo piutang usaha.

Management sets credit limits for each customer and the exposure to credit risk is monitored on an ongoing basis by evaluating the collectability of each trade receivables balance.

Nilai tercatat aset keuangan mencerminkan eksposur kredit akhir.

The carrying amount of financial assets represents the ultimate credit exposure.

Umur piutang usaha pada tanggal pelaporan adalah sebagai berikut:

The aging of trade receivables at reporting dates was as follows:

31 Desember/31 December Dalam jutaan Rupiah 2015 2014 In millions of Rupiah Belum jatuh tempo 323.628 324.786 Not yet due Lewat jatuh tempo: Overdue:

1 - 30 hari 26.952 24.478 1 - 30 days 31 - 60 hari 1.576 2.256 31 - 60 days 61 - 90 hari 1.142 2.105 61 - 90 days Lebih dari 90 hari 145 681 More than 90 days

353.443 354.306




45

28. INSTRUMEN KEUANGAN DAN 28. FINANCIAL INSTRUMENT AND MANAJEMEN RESIKO FINANCIAL RISK KEUANGAN (Lanjutan) MANAGEMENT (Continued)

Risiko mata uang Currency risk Perseroan memiliki risiko mata uang sehubungan dengan transaksi (pembelian aset tetap dan persediaan dari pemasok luar negeri dan penjualan ekspor) dalam mata uang selain rupiah. Mata uang yang mempengaruhi resiko ini terutama USD, EUR, JPY dan AUD. Lihat Catatan 26 untuk eksposur neto Perseroan terhadap risiko mata uang.

The Company has exposure to currency risk through transactions (purchases of fixed assets and inventories from overseas suppliers, and export sales) in currencies other than rupiah. The currencies giving risk to this risk are primarily USD, EUR, JPY and AUD. See Note 26 for the Company’s net exposure to currency risk.

Manajemen tidak melakukan lindung nilai karena aset dalam valuta asing yang tersedia cukup untuk melunasi liabilitas dalam valuta asing.

The Company does not enter into hedging transactions since the foreign currency assets are sufficient to settle the foreign currency liabilities.

Pada tanggal pelaporan, saldo aset dan liabilitas moneter dalam valuta asing dijabarkan dalam rupiah dengan kurs yang berlaku pada tanggal tersebut. Kurs utama yang digunakan pada tanggal 31 Desember 2015 dan 2014, berdasarkan kurs tengah Bank Indonesia adalah sebagai berikut:

At reporting date, balances of monetary assets and liabilities in foreign currencies are translated into rupiah at the exchange rates prevailing at that date. As of 31 December 2015 and 2014, the relevant key exchange rates used, based on Bank Indonesia middle rates, are as follows:

2015 2014

Rp Rp

Dolar Amerika Serikat (USD) 1 13.795 12.440 U.S. Dollar (USD) 1 Dolar Australia (AUD) 1 10.064 10.218 Australian Dollar (AUD) 1 Euro Eropa (EUR) 1 15.070 15.133 European Euro (EUR) 1 Yen Jepang (JPY) 1 114,52 104,25 Japanese Yen (JPY) 1

Menguatnya/melemahnya Rupiah terhadap valuta lain akan berdampak pada ekuitas dan laba rugi setelah pajak penghasilan sebesar nilai yang disajikan di bawah. Analisa ini didasarkan pada pergerakan kurs yang menurut manajemen mungkin terjadi pada tanggal pelaporan. Analisa ini mengasumsikan semua variabel lainnya konstan dan mengabaikan dampak perkiraan penjualan dan pembelian.

Strengthening/weakening of the Rupiah against other currencies would impact equity and profit or loss after income tax by the amounts shown below. This analysis is based on movement of exchange rate that management considers as being reasonably possible at reporting dates. The analysis assumes that all other variables remain constant and ignores any impact of forecasted sales and purchases.


Kenaikan/penurunan 1,5% 6.153 4.783 Strengthening/weakening 1.5%

Pengelolaan modal Capital management Kebijakan pengelolaan modal Perseroan adalah untuk menjaga struktur modal yang kuat sehingga menjaga kepercayaan investor, kreditur dan pasar dan juga untuk mempertahankan perkembangan masa depan dari bisnis Perseroan, termasuk untuk menanggapi kebutuhan belanja modal yang besar terkait dengan fasilitas produksi. Dalam usaha untuk menjaga struktur modal yang optimal, manajemen dapat menyesuaikan jumlah dividen yang dibayarkan kepada pemegang saham.

The Company’s policy is to maintain a strong capital structure as to maintain investor, creditor and market confidence and to sustain future development of the Company’s business, including to address the need for substantial capital expenditure inherently required with respect to refurbishment of production facilities. To maintain optimal structure of capital, management determine the level of dividends paid to shareholders.

Tidak ada perubahan yang dilakukan terhadap kebijakan pengelolaan modal Perseroan selama tahun berjalan.

There were no changes made in the Company’s capital management policies during the year.




46

29. PENYAJIAN KEMBALI 29. RESTATEMENT

Sebagai hasil dari perubahan kebijakan akuntansi seperti dijelaskan di Catatan 2f, informasi komparatif yang disajikan dalam laporan keuangan ini telah disajikan kembali. Tabel berikut merangkum dampaknya ke laporan keuangan Perseroan.

As a result of the change in accounting policy as explained in Note 2f, the comparative information presented in these financial statements have been restated. The following table summarize the impacts on the Company’s financial statements.

31 Desember/31 December 2014 Dilaporkan sebelumnya/ Disajikan As previously Penyesuaian/ kembali/ Dalam jutaan Rupiah reported Adjustments As restated In millions of Rupiah Laporan posisi keuangan Statement of financial position Liabilitas imbalan kerja 335.511) 110.936) 446.447) Employee benefit obligation Aset pajak tangguhan, neto 52.220) 27.734) 79.954) Deferred tax assets, net Saldo laba-tidak dicadangkan 2.728.059) (83.202) 2.644.857) Retained earnings-unappropriated Laporan laba rugi dan penghasilan komprehensif lain

Statement of profit or loss and other comprehensive income

Beban pokok penjualan (2.766.551) 5.812) (2.760.739) Cost of sales Beban penjualan (338.976) 784) (338.192) Selling expenses

Beban umum dan adminstrasi (43.652) 760) (42.892) General and administrative

expenses Beban pajak tangguhan 2.066) (1.839) 227) Deferred tax expense Rugi komprehensif lain,

setelah pajak -) (21.845) (21.845) Other comprehensive loss,

net of tax Laporan posisi keuangan pada tanggal 1 Januari 2014 (yang berasal dari laporan posisi keuangan pada tanggal 31 Desember 2013) juga mencerminkan saldo yang dinyatakan kembali.

The statement of financial position as of 1 January 2014 (which was derived from the statement of financial position as of 31 December 2013) also reflects restated balances.

1 Januari 2014/1 January 2014 Dilaporkan sebelumnya Disajikan As previously Penyesuaian/ kembali/ Dalam jutaan Rupiah reported Adjustments As restated In millions of Rupiah Laporan posisi keuangan Statement of financial position Liabilitas imbalan kerja 304.706 89.165) 393.871 Employee benefit obligation Aset pajak tangguhan, neto 50.154 22.291) 72.445 Deferred tax assets, net Saldo laba-tidak dicadangkan 2.307.644 (66.874) 2.240.770 Retained earnings-unappropriated Penyajian kembali ini tidak mempengaruhi klasifikasi jumlah arus kas dari aktivitas operasi, investasi, dan pendanaan yang sebelumnya dilaporkan.

The restatement does not impact the classification of previously reported total cash flow from operating, investing, and financing activities.

Corporate Secretary

Jl. Ancol IX / 5, Ancol Barat, Jakarta 14430, Indonesia

• Phone. +62 21 690 4041 • Fax. +62 21 691 8820 / 690 4128

www.amfg.co.id

Documents

ANNUAL REPORT - Indonesia-Investments · PT Asahimas Flat Glass Tbk ANNUAL REPORT 2015 02 For the years ending December 31 ((in million Rupiah, unless specially stated.) Net Sales