1 Footnote

1. 1 Footnote SOURCE: Source ERP Project Update Report # 1 – June 2013 |

2. Report Summary Progress Achievement Plan for Coming Period • ERP kick off meeting have doe successfully on 10 June for Indonesia side and will continued for Chinfon on 1 July 2013 • 1st activity survey & diagnosis by Digiwin have been done with the following progress • - Fin & Acc : 6 of 6 topic have been discussed • - Purchase: done • - Sales & Distribution: done partially • - Vehicle Mgt, Project Mgt, Inventory Mgt, Cost Mgt, Prod • Mgt : Not yet discussion due to consultant was sick • Continued to conduct survey & diagnostic in Chinfon Plant, with the objectives: • To get understanding of CFC system • Alignment CG process flow & CFC process flow • Initial discussion for alignment system • Survey & Diagnostic for pending Items • Tiptop application understanding session for developing SOP 1st version with involved Process Owner and Key Users Key Issues & Action Support Required • Some modules was postponed due to consultant was sick (lost 3 days). • Digiwian will catch up the schedule on next period • To reserve Process Owner and Key user time availability on Tiptop application session on 21 June 2013 |

3. Overall Progress Actual progress was behind schedule due to consultant was sick. Action: we will chatup the progress in July

4. Graph Cost trend

5. Finance & Accounting workstream update • Key Finding Summary • General Ledger module will accommodate the needs of Holding consolidated financial statement with Inter-Company transactions. • Finance module will automatically generate 2 account books : Management and Tax purpose • System Budget control per cost element • Account Payable module will provide A/P Aging Analysis, A/P write-off process, control PO-GR-IR with direct link to Purchase and Inventory module • Account Receivable module will provide A/R Aging Analysis, Sales Revenue Analysis, Credit Limit control, print Invoice, control SO-DO-Invoice with direct link to Sales and Distribution module • Fixed Asset module will provide control over Fixed Asset and LVA (Low Value Asset) • To be finalized further • Consolidation Structures : Formal & Mgmt Requirement need to be finalized and approved • Setup the rule of CoA for Consolidation • Setup Group Accounting Policies • Setup Group Approval Matrix • Decide Group Functional Currency • Setup the Main Cost Center base on Cost Activites : Cement Plant, Grinding Plant, Ready Mix, Aggregate, Pre-Cast, Head Office, Trading, etc • Setup Fixed Asset Code rule and digitsafter compare with Chinfon • Tax will be calculated automatically upon creation of Purchase Order (P/O). Need to provide Tax formula and Tax Equalization Report

6. Sales & Distribution workstream update Key Finding Summary Sales module needs to be customized to accommodate the Inter-Company transactions, Web-Sales process, Customer Master, Price Master, Credit Control, Sales Promotion Distribution module will accommodate the Stock Transfer, Good Issue, Swap process, Product return for Raw Material, Semi-Finished Goods, and Finished Goods Fleet Management needs to be customized to accommodate the scheduling for truck and vessel, Freight Cost optimization, Shipping monitoring, To be finalized further : Design Customer Master base on Sold-to, Ship-to, Bill-to, and Paid-to with multiple address Setup Customer Code rule and digitsafter compare with Chinfon Setup Credit Limit per Customer and Approval Release Matrix Setup the Sales Order categorization base on : Cash Sales, Credit Sales, Employee Sales, Promotion Sales, Donation, Sample, Swap, Return Setup Vehicle Master Mapping all Sales & Distribusion business flow

7. Purchasing workstream update • Key Finding Summary • Item master have been discussed with consist of the following items • Item No. Code Rules. • Item Categorization Rules. • Process of Creating New Item. • PR creation connected to the budget module, so any unbudget will be rejected at this phase • All Tax elements calculation including in the PO • The other functionality will accomodate in the system • To be finalized further: • Headquarter control policy need to be define, including: Item Master Data, BOM, Customer Master Data, Supplier Master Data • Item Master Code Rule need to discuss and final. • Blanket PO for long term contract • Item Category Control Policy need to be clarify. • Qualify Vendor List Maintain Process need to be created. • Purchase Price Control Process need to be created. • All To Be Process need to be confirm with CFC.