AASTAR Survey Diagnostic and Gap Analysis

1. AASTAR Survey Diagnostic and Gap Analysis 04 - 06 September 2013 0

2. AASTAR Current Business Scope Buy from Sell to Third Party / CG Clinker CFC Cement CFC AASTAR CG Plywood Third Party Katingan tba Palm Oil tba 1

3. Key Findings • All of functionality in TIPTOP modules can be adopt to AASTAR with some changes in basic data parameters for trading company • Customization only requires for Invoicing and Tax • Modules require by AASTAR are • A/R Management • A/P Management • Notes Management • Fixed Asset • General Ledger • Tax Management • A/R & A/P module is used for generate Subsidiary Ledger • AASTAR can have S/O themselves, even have their own customer and product(plywood), not just inter-company transaction pass through. • It suggested for temporary, AASTAR will not use auto Inter-Company transactions because they need to have different purchase and selling price, and need segregation authority. It means maintain the Inter-Company transaction directly in A/R module, and skip the Sales & Purchase module. • Modules require in standard sales are Contract, Sales Order and Delivery Note • Indonesia system mostly can adopted by AASTAR except inventory transaction (Stock In – Stock Out), so need minor customization to exclude stock-in and stock-out in inventory. TIPTOP Financial & Accounting Modules can be used with small customization Inter-company transaction need to be further discussed Sales modules can be adopted from Indonesia system except inventory transaction

4. Key Findings • Customization requires for (approximately customization hours = 100 - 200 hours) • Two kind of Print layout of Tax Invoice (= Commercial Invoice). One for Sales of Cement, and other for Sales of Plywood. • Print of Debit Note of AR • Print of Credit Note of AP • Link to IDN Server from Singapore office is using VPN (TIPTOP cannot running through internet) and it's not stable during our 3 days trial • It should be considered to used Direct Link instead of VPN in implementation because need stable networking for group company consolidation • It might be need additional job when implementing ERP system, currently AASTAR only perform simple business practices such as creating A/R and A/P only, with the ERP system they will have additional job to creating S/O, PO, GR and GI in every transaction • Need additional manpower for MIS related job such as setup basic data parameter, training, data population and migration specifically for Singapura company to smoother system implementation Customization requirements IT infrastructure quality need to be improved Organization impact related

5. TipTop Inter-Company Transaction AASTAR CFC Customer CG S/OPRP/O S/OP/OS/O D/NG/R D/NG/RD/N Transfer A/RA/PA/RA/P A/R RED wordmeans manual input(others auto generate from system) Since AASTAR also manage their own customer and product (i.e. plywood & palm oil), means it's not just inter-company transaction pass through

6. Conclusion & Next Steps • There is no specific requirement for AASTAR but as a growth company have many future plan, means their requirement is changing and right now not only cover cement and clinker but including plywood and palm oil in future. • Mostly can adopted from Indonesia with some customization for specific requirements • Auto intercompany transaction need to discussed further between AASTAR, CG & CFC, and then decided whether used or not used due to have segregation of authorities • To make better on implementation phase and focus on critical issues solution, we have plan to implementing ERP system in AASTAR after go-live in Cement Division • Ms Shinty will confirm the update consolidation structure (i.e. whether up to Burlingham or WHI only) • AASTAR team will join to the Operational Training on Oct 7, 2013 at Jakarta 5

7. Thank you 6