~Holcim Sent, Permance Passion Pricing Policy eee oe) Disclaimer All conducts recommended in this pricing policy (the Pricing Policy’) is only envisaged in the context of independent, unilateral conduct by PT Holcim Indonesia Tbk and/or PT Lafarge Cement Indonesia (hereinafter both PT Holcim Indonesia Tbk and PT Lafarge ‘cement Indonesia shall be referred to as the “Company’), are intended to comply with all applicable laws including, but not limited to, applicable local competition and antitrust laws, as well as with LafargeHolcim’s internal policies and directives, particularly the LafargeHolcim Fair Competition. Cirective and the LafargeHolcim Commercial Documentation Directive. This Pricing Policy, including all data contained in it, is the property of the Company, is strictly confidential, is for internal use only, and is not to be distributed without prior written permissionfrom the Company. 1.SCOPE This Pricing Policy applies to Cement Business Operations (both Retail and Industrial) for the Company 2. OBJECTIVES The objective of this Pricing Poly are to outline a documented set of broad guidelines, formulated to manage the major risks that can affect the compliance with the laws, regulations and other policies of the Company, including legal and compliance, finance, strategy and operation. It is designed to influence and determine all major decisions and actions, and all activities to direct and restricts the plans, decisions, and actions of the Company to achieve its objectives. 3. METHODOLOGY This Pricing Poli developed based on the needs to manage the maior risks that gathered through collective identification and expected to mitigate the risks that managed by person in charge (PIC) as mentioned in the Delegation of Authority of Pricing Management (DoA), which is part of this Pricing Policy. Amanverot TA crerseticcim om9Pr Hin wna Th, 14, PRICING COMMITTEE (PC) PCs the ultimats decision maker in the Company for pricing whom members are: © CEO o CFO © Sales Director © Marketing Director PC ensures that the Pricing Policy complies with applicable laws and regulations, and also shall regularly review the Policy as well as delegates its authorities as stated in the Dod. The Pricing Manager of the Company facilitates the PC to meet on a regular basis to review the pricing and margin results, thePricingPolicy, market and sales information, strategies against competitors that comply to any applicable law and regulations, requirements, and also other pricing decisions that have been decided by the DoA 5.POLICY 41. Pricing Structure ‘The Commercial System Management Manager reviews and maintain the pricing structure fo enable the Company of having transparency in measuring the achievement towards the objectives. The system configuration is developed to support the continuous process such as to enable multilevel of profitability reports that sourced from the system. Other related tools must comply with this Pricing Policy. Each pricing component such as price list, surcharges, discount and rebates are provided by segments, products, geographic and channels to the lowest level such as delivery destination (ship to). The grouping of segments, products, geographic, channelsand terms of payment are describes in Annex 5, 6 and 13. The micro level of a price component is detailed in Annex 4. 2. Risk Management and Policy The Pricing Policy is prepared to control the risk identified in compliance, strategy, financial and operation as specified in Table 2.2. Each control is assigned to Person In Charge (FIC) as specified in Table 2.1. LafergeHotcim (©2018 PT Hlcin cones, Tok 22.1. People and functions CEO Chief Executive Officer CFO (Chief Finance Officer | MD Marketing Director SD Sales Director = HNBDIHS Head of National Business Developrienl/ Head of ‘SM Sales Manager Head of Pricing, Market intel & wewscst| benders Mra nse PC Prising Committee é PMM 19 Management Manager CSMDMM (omnes ‘System & Master Data Management [PA Prising Analyst RTM. { Route to Market Manager cPAM | Channel Planning Activation Manager Beat HLO) I Head of Logistic Operation HPr i Head of Procurement TM | “Tax Manager m7 Legal Manager : 1c __Internal Control [Bc Business Coniroller z HCPA Head of Channel Planning Activation 2.2, Risk Management end Policy Compliance Risk —_| Person In-Charge (PIC) and mi jation control eee ee NYE Cece ese seers eseeseseeceeceas) [Potential violation to ‘© PMM shall ensure that there is no agreement or | unfair business discussion with competitors when we determine competition as regulated the Company's price. PMM reviews all in law n0.5/99 and its distributors and direct customers (Collectively the implementing regulations | “Customers")' prices for the same segment and the “Compatition'Law") ensures that the price, discount and surcharge must be reasonable and not discriminatory. o PMM documents the declaration from market decision and to ensure that the judgment of market decisions are in compliance with the Competition Law ‘See Appendix 1. © PMM shall first consider the Company's market share before applying a rebate scheme to avoid any infringement to the i-Competition Law. o SD shall ensure that the agreement with the Company's Customers comply with the Competition Law. LafargeHotcim (©2016 PT Holi indonesia, Tok, 3