HERO GROUP PELSPI/LOFTF Project Launching Philippines, Manila 01st December 2015

Quick Fact about Indonesia: Population : 248 million people GDP : US$1.3 trillion 5.8% growth 5.9% 5-year compound annual growth US$ 5,214 per capita Unemployment Inflation : 6% 6.4% Retail Sales Real sector Growth : US$140 billion 15% Modern Retail Share Main areas market : ±40% Hypermarkets, Supermarkets, Department Stores, Mini Markets, Speciality Stores

What makes Hero Indonesia’s leading retailer ? Establish in 1971. Hero has Grown to become Indonesia’s leading modern retail operating five brand with 641 stores across Indonesia as of June 2015 To bring Indonesian customers the benefits of modern Retail

We currently operates 5 retail brands that is widely recognized and respectively has unique positioning

Number of Employees of PT Hero Supermarket 18,000 16,507 17,178 15,054 14,000 12,000 10,000 Union Member (SPHS) 8,000 Number of Employees 6,000 4,000 2,000 Dec Dec Dec 31,2012 31,2013 31,2014 16,000

INDUSTRIAL RELATION “ PANCASILA” CONCEPT A system of relations formed between the actors in the production process of goods or services which consist of representatives from employers, workers and governments that are based on the values ​​of Pancasila and the Constitution of the Republic of Indonesia Year 1945. "

Employee Activity

Bipartite Corporation Body (Bipartite LKS ) LMC (Labor and Management Comitee) Bipartite Corporation Body (Bipartite LKS )

CLA (Collective Labor Agreement)

3 foundation to Developt ORGANIZATION 3 foundation to Developt Industrial Relation :

SAFETY & HEALT RETAIL “ We are committed to always put the safety and health in the retail field as a guideline in the implementation of their daily work by providing training - training to employees and management to pay attention to safety and health at work “

THREE KEY POINTS TO DEVELOP SOCIAL DIALOGUE TRUST &

2. Union involved and engaged in Company programs, such as: 1. Every 3 months dialogue between Management and Union and communicate company result 2. Union involved and engaged in Company programs, such as: a. Reduce the shrinkage potential in the company b. CSR Programs – Donation for employees affected flood -- Internally and externally supported Management programs for surrounding community 3. Employees cooperative to improve economy of the employees managed by UNION

EMPLOYEES & UNION INVOLVEMENT The involvement of HERO Group Employees as well as external UNION in several CSR Programs internal and

provision of facilities SME/Farmers’ Empowerment Community Health “Zumba Carnival” Hero Group held charity event to help children with cancer and donate Rp 474.900.000 to YPKAI One Store One School “Adopt a School” Program Program KASIH Improve maternity health and child development HERO Green Actions Way towards to Environmental Friendly We support local SME who has potential product and encourage them as regular suppliers of fresh products in our stores Coaching is done include health services, supplementary feeding (software), increased competencies POSYANDU cadres (brain ware), provision of facilities (hardware) A social environmental act to increase people’s awareness by restoring the environment for a healthy place to live and organising recycle corner workshop Improve the school welfare and its student in the vicinity of our stores 11

Beneficiaries Loyalty Protection Engagement Business CSR Activities ase buying CSR Activities Community Smarter Children economic status power Internal Involvement in program Increase Incr e Communities Empowerment | Beneficiaries Social Assistance company Transparency Employees Sustainable Business Increase Customer Create Social Loyalty Protection Good Corporate Image Employees Engagement

THANK YOU