Overview Sampoerna PT Hanjaya Mandala Sampoerna Tbk. ("Sampoerna") is one of the leading cigarette manufacturer in Indonesia.

We produce a number of brands of cigarettes are widely known, such as Sampoerna Kretek, A Mild, and "King Clove" legendary Dji Sam Soe. We are an affiliate of PT Philip Morris Indonesia, and part of Philip Morris International, the leading cigarette manufacturer in the world. Our mission is to offer the best smoking experience to adult smokers in Indonesia. This we do by constantly figuring out consumer desires, and deliver products that meet their expectations. We are proud of the reputation we have achieved in terms of quality, innovation and excellence. In 2011, Sampoerna has a market share of 31.1% in the Indonesian cigarette market, based on Nielsen Retail Audit Full Year 2011 Results. At the end of 2011, the number of employees of Sampoerna and its subsidiaries were approximately 27,000 people. In addition, the Company is also working with 38 units Cigarette Production Partners ("MPS") located at various locations on the island of Java in producing Hand Clove Cigarettes, and overall has more than 60,000 employees. The Company sells and distributes cigarettes through 65 sales offices throughout Indonesia. In 2012, Sampoerna exactly 99 years old, which is an important milestone for Sampoerna as one of the oldest companies in Indonesia. Number 9 is a special figure in the history of the company. Sampoerna company's history and success can not be separated from the history of the founding Sampoerna family. The Chinese have always placed great faith in lucky numbers (especially six, eight and nine) are similar to the pronunciation of another word with a positive meaning. Sampoerna family lucky number is a nine-or "Jiu", which sounds like a word that means eternal, as in friendship and marriage. As one of the leading cigarette manufacturer in Indonesia, Sampoerna proud tradition and philosophy on which the company's success is backed by strong brands and the best employees, while continuing to innovate for the future brighter.

History of Sampoerna The history and success of PT HM Sampoerna Tbk. ("Sampoerna") is inseparable from the history of the founding Sampoerna family. In 1913, Liem Seeng Tee, a Chinese immigrant, began making and selling handrolled cigarette in his home in Surabaya, Indonesia. The small company is one of the first companies to manufacture and market cigarettes and white cigarettes.

Popularity of clove cigarettes is growing rapidly. In the early 1930s, Liem Seeng Tee family as well rename his company Sampoerna name, which means "perfection". Once the business has grown fairly well established, Liem Seeng Tee move residences and factories into a complex of abandoned buildings in Surabaya which was then renovated by it. The building is then also used as a family residence, and up to now, the building known as Taman Sampoerna is still producing hand-rolled cigarettes. The building now also includes a museum that documents the history of Sampoerna family and his business, and is one of the main tourist destinations in Surabaya The third generation of the Sampoerna family, Putera Sampoerna, took over the helm of the company in 1978. Under its control, Sampoerna developed rapidly and became a public company in 1990 with a modern corporate structure, and the start time of investment and expansion. Furthermore Sampoerna managed to strengthen its position as one of the leading companies in Indonesia. Sampoerna's success attracted the attention of Philip Morris International Inc.. ("PMI"), one of the leading tobacco companies in the world. Finally in May 2005, PT Philip Morris Indonesia, an affiliate of PMI, acquiring majority ownership of Sampoerna. Board of Directors and new management which consists of a combination of Sampoerna and PMI professional leadership of the Company continue to create operational synergies with PMI, while still maintaining the traditions and cultural heritage of Indonesia, which has been owned since almost a century ago.

Brand Us PT HM Sampoerna Tbk. ("Sampoerna") and its affiliates manufactures, market and distribute cigarette in Indonesian, which covering sigaret kretek hand-, sigaret clove machinery, and cigarettes white. Cigarettes kretek controls around 92% market cigarette in Indonesian. Among brand cigarettes Sampoerna is Dji Sam Soe, A Mild, Sampoerna Kretekdan U Mild. Thanks to focus and investment on portfolio brand, on the year 2011, group's core brand the Company managed to maintain the position on 15 cigarette brands top in Indonesian, and we managed to boost market share up to reaches 31.1%. Group brand Such nuclei is A Mild, Dji Sam Soe, Marlboro, Sampoerna Kretek and U Mild. A Mild A Mild was launched by Sampoerna in 1989. A Mild is a pioneer product categories LTLN cigarettes (low tar low nicotine) in Indonesia. At this time, A Mild is produced

at factory Karawang and Sukorejo. In 2011, A Mild maintain its position as a cigarette brand with the largest market share in Indonesia *. Dji Sam Soe Dji Sam Soe is a hand-rolled cigarettes were manufactured by Handel Maatstchapijj Liem Seeng Tee, who later became Sampoerna. Dji Sam Soehingga currently manufactured by hand in the production facilities in the factory of Sampoerna in Surabaya 3 and 1 factory in Malang. The packaging also has not changed for nearly 100 years. Dji Sam Soe positioned as a kretek premium in Indonesian and the until at this time remains leading the for segment SKT *. Varian Dji Sam Soe covers an Dji Sam Soe Filters and Dji Sam Soe Magnum Filters which constitute sigaret machine clove. Dji Sam Soe Kretek and Dji Sam Soe Super Premium is a hand-rolled cigarettes. Sampoerna Kretek Sampoerna Kretek is hand-rolled cigarettes were first produced in 1968 in Denpasar, Bali, by Aga Sampoerna, head of the Sampoerna family's second generation.

* Based on Nielsen Retail Audit Results Full Year 2011

Our Performance Vision and Mission Sampoerna Vision PT HM Sampoerna Tbk. ("Sampoerna") contained in the "Philosophy of the Three Hands". The philosophy of taking an overview of the business environment and the role of Sampoerna in it. Each one of the three "hands", which represents the adult smokers, employees and business partners, as well as the general public, are the ones that should be embraced by Sampoerna to achieve the vision of becoming the leading company in Indonesia. We won all three groups in the following way: 1. Producing quality cigarettes high with reasonable prices for adult smokers Sampoerna cigarettes is fully committed to producing high quality with reasonable prices for the consumer today. This is achieved through offering relevant and innovative products to meet consumer tastes are dynamic. 2. Provide compensation and good working environment to employees and fostering good relations with business partners

Employees is the most important asset Sampoerna. Compensation, work environment and good opportunities for development are key to building employee motivation and productivity. On the other hand, our business partners also play an important role in our success, and we maintain close cooperation with them to ensure the vitality and their resistance. 3. Contribute to the wider community Sampoerna's success is inseparable from the support of the community in Indonesia. In contributing, we focus on the activities of poverty alleviation, education, environmental protection, disaster management and social activities of employees. Corporate Governance We also remain steadfast to run programs that strong corporate governance and is intended to protect all stakeholders Sampoerna properly and effectively. The commitment we make it work and grow and maintain standards compliance, responsible behavior and of the highest integrity throughout the organization Sampoerna. Sampoerna set standards of compliance and integrity were very high in running the business. Rules of behavior (code of conduct) is applied to the entire affiliate of PMI, including Sampoerna, Sampoerna communicated to employees at all levels of the organization. Training programs are held regularly and closely monitored employee participation.

Corporate Governance One of the key to success the Company's is obedience against principles-principles corporate governance which good. As a public company, all at once one of one affiliates PMI, the application of corporate governance which good become a must for the Company. Company sets compliance standards and integrity which very high in running effort. Rules behave (code of conduct) which applied on entire affiliate PMI, including Sampoerna, communicated to employees the Company on the entire tiers the organization. Training programs are held regularly and closely monitored employee participation. The implementation of corporate governance in Sampoerna is the responsibility of the Board of Commissioners and Board of Directors, assisted with team which consisting of the experts in the field of of law (legal counsel) and internal control. The team routinely monitor adherence against all of policy.

Way We Operates We are one of the cigarette company the leading in Indonesia with facilities factory and offices sales in various regions in Indonesian. In Wherever we perform manufacturing process, we always apply the highest standards to ensure quality of the prima who expected the smokers brand our. Our operational a day-day not only covers the production cigarette, but also covers the way us doing business and interact with world outside our office, either locally or global. In every country place our products are sold, we guided by principle same basic. One of main objectives our is a become company which socially responsible. Because's why we very serious about social performance our: We communicate the negative impact smoke against health. We support the regulatory framework cigarettes who thorough and pay attention health goals society, employment, revenues the state and predictability industrial. We support the the implementation of the and enforcement of firmly provisions who regulate minimum age product purchase tobacco. We also closely cooperate together retailers and other partners for implement program smoking prevention in among children and adolescents. We cooperate with policy makers, enforcement agencies law, and parties retailers for combat the illegal trade cigarettes counterfeit and contraband. We has implemented a policy and program to consistently reduce environmental impact, with reducing usage resource of natural, reducing gas emissions greenhouse, as well as reducing waste production. We work closely with farmers and suppliers for develop agriculture tobacco which is sustainable. We working together with suppliers, institutes society, and the government to tackle problems child labor and other violations about employment who associated with eyes supply chain our. We contribute to improve the lives of local communities through social activities who sustainable, activities of voluntary and support against various institutes nonprofit.

Cigarette Production From Agricultural Land Up to Factory After harvested and dried, tobacco and cloves taken to the location of the factory. Tobacco usually saved up for 3 years in a controlled environment to help improve its flavor. Cloves also pass through storage process a similar up to during one year before it processed became "clove Chopping" (cut clove). Tobacco which has been saved will processed first before mixed with cloves chopped who has been dried, then be used as racikan cigarettes which will rolled become cigarette. Racikan who has been finished, which ordinary so-called "cut filler," is stored in a granaries-sized large before entering the the production process cigarette. Cigarettes kretek can be either-made clove cigarette hand-(SKT) or sigaret kretek machine (SKM). One of the uniqueness of industry kretek Indonesia is to still use of methods pelintingan it manually with hands, whereby the workers rolling a cigarette products kretek with very quickly, even until can reach 350 stems per hour. Facilities Linting-hand and artificial machine Production of hand-rolled cigarettes and rolled cigarettes machine consists of three stages: Processing of leaf tobacco; Production cigarette; And packaging as well as preparation distribution. In each stage of production, quality control very carefully plays an important role to ensure that every cigarette is made to the highest standards. After ready, cigarette then packaged and shipped for process distribution. Shares Sampoerna was recorded in Stock Exchange Indonesian with trading code its shares HMSP.

History, finance, management,

STRENGTH (S) 1. Quality Raw Materials 2. Market share 3. credibility of the company 4. Corporate culture 5. The capital value of the

Weakness (W) 1. Price is quite expensive 2. Less enthuses mild cigarette products in the International 3. SKM filtered defeat of market share from competitors

4. Substantial capital to hold a regular event 5. The slow growth of cigarette Avolution

Opprtunity (O) 1. Entry of Philip Morris as a business partner 2. Positive market trend for cigarette LTLN in Indonesia 3. The number of spots found on the event to promote a new product 4. The possibility of a new product 5. Customer defection competitor to cigarettes (LTLN) Sampoerna

THREAT (T) 1. Regulations and regulations regarding anti-smoking 2. Competitors of cigarettes Mild 3. Possibility of increasing competitor mild cigarettes 4. Higher cigarette taxes 5. Reduced event sponsored by the tobacco

SO Strategy (S1, O4) The latest innovation products for foreign targets (S4, O1) Trying to find investors (S5, 03) Large-scale promotion to boost brand awareness and business expansion. (S3, 05) did seize customer strategy (S2, O2) Fixed maintain market share Mild current trends

OW Strategy (W5, O1) Set the strategy to promote Avolution overseas through the help of Philip Morris

(W3, O2) More focused strategy to maintain mild as current trends (W2, O4) Create a new innovation to make cigarettes. (W1, O5) Emphasize Finest Quality to customers through a media campaign. (W4, O3) In a large-scale event held massive prmosi increase customer awareness.

ST Strategy (S5, T1) Participate in anti-smoking campaigns to raise awareness (S2, T3) control of the market share by lowering prices mild. (S3, T5) Trying to get sponsors through certain conditions (S5, T4) held research to find cheaper raw materials. (S1, T2) Maintain customer and that the customer perception in the wake sampoerna

The Finest Quality WT Strategy (w2, T4) offers mild to Reduce abroad because customs that expensive, increase the supply in the country. (W3, T2) Conduct market penetration for products SKM filter (W1, T1) Making CSR strategy to deal with smoking regulations. (T4, W5) Create Avolution more exclusive image then export abroad. (W4, T5) Make periodic event sampoerna for product promotion.

Product (product) Products of this PT.Sampoerna aplenty especially for products such as mild clove cigarettes, A Mild, Dji Sam Soe and Sampoerna clove.

Price (price) In the Sampoerna company's website does not have a price, because the price is set every customer vary depending on retailer, because Sampoerna working with small businesses who want to buy their products.

Places (places) For now sampoerna company already distributes its products across Indonesia from the west, south, north and east. And for these Sampoerna products consumers can visit the service providers to fill the store with products from Sampoerna as owned social cooperation that can facilitate PT.Sampoerna tbk Sampoerna product distribution to consumers and the wider community.

Promotion (promotion) PT.Sampoerna itself has its own way of promoting their products by sponsoring the event as a major sponsor of sports events, musical or other social events. Not only to sponsor the event, but the company Sampoerna also promote their products by advertising on TV and put up huge billboard in the streets of the protocol as well as in places such as bus stops, stations and airports or sports buildings corporate sponsored sampoerna.