HUMAN CAPITAL SYSTEM AND INFRASTRUCTURE

For the Human Capital System and Infrastructure after the merger, the Company still used the respective systems and infrastructure in the entities prior the merger, where the systems used for managing the employee database included:

1. Enterprise Resource Planning (ERP) Oracle System - Regional 2;
2. Enterprise Resource Planning (ERP) System Application and Processing (SAP) - Regional 1 and Regional 3); and
3. Human Resource Information System (HRIS) - Regional 4.

For future employee database management, we will use a single SAP ERP system for a more efficient and effective management. The stages to be carried out towards the single system include:

1. Migrating data from each Regional into the System Application and Processing (SAP);
2. Developing the integration of HC data from each Region into the System Application and Processing (SAP) during the transition period (before becoming a single ERP system);
3. Developing a single Enterprise Resource Planning (ERP) in stages with System Application and Processing (SAP), which was chosen as the single system; and
4. The HC modules in the single ERP include HR Core, Payroll, Time & Attendance, Travel Management, Performance Management, Competency Management, and Learning & Knowledge Management.

For developing the Human Capital infrastructure, the Company will review two possible options: On-Premise Server (physical server owned by the Company and stored at the Data Center), and Cloud Server (cloud-based virtual server), where the factors to be considered will include security data, efficiency of system development and maintenance.