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Page 1
PUBLIC EXPOSE
 September 11, 2025
Page 2
PUBLIC EXPOSE

• GG Profile
  • Management
  • Premium Quality Products
  • Corporate Sustainability
• Cigarette Industry & GG Volume Development
• Company Financials
• Impact of Excise Duty Increases
• Outlook

                                               2
Page 3
GG PROFILE



             3
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B OA R D O F D I RE C TO RS                                                              There have been
                                                                                        no changes to the
                                                                                        Board of Directors
                                         President Director                                    since 2022
                                    SUSILO WONOWIDJOJO




                                       Vice President Director
                         INDRA GUNAWAN WONOWIDJOJO




 Director    Director    Director            Director             Director   Director            Director
                          ISTATA                                                                  SONY
  HERU       HERRY                           ANDIK               HAMDHANY     SLAMET
                          TASWIN                                                                 SASONO
BUDIMAN     SUSIANTO                        WAHYUDI                HALIM     BUDIONO
                        SIDDHARTA                                                               RAHMADI



                                                                                                            4
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B OA R D O F C O M M I S S I O N E RS                                 A new Independent
                                                                      Commissioner
                                                                      appointed.


                                       President Commissioner
                                JUNI SETIAWATI WONOWIDJOJO




     Independent Commissioner          Independent Commissioner   Independent Commissioner
     FRANK WILLEM                        GOTAMA                       HANLIM
      VAN GELDER                     HENGDRATSONATA                  SUPRIANTO



                                                                                             5
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P R E M I U M Q UA L I T Y   Comprehensive coverage – new variants in the
                                                 SKT and SKM segments.
P RO DU C T S




                                                                            6
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C O R P O R AT E S U STA I N A B I L I T Y

                        Corporate Social Responsibility, Company Health & Safety
                        / Environmental Responsibility
                                President Commissioner
                      J U•N IOngoing
                              SETIAW programmes:
                                      ATI WONOW  social
                                                  I D J Oneeds,
                                                          JO    education, beliefs, greening
                        • Health, Safety & Environment (HSE) standards maintained (SMK3)
                        • Electricity/water usage reduced / progress continues on energy
                          management
                        • Constant air quality and waste management monitoring
                        • BLUE PROPER rating from Ministry of Environment & Forestry




                                                                                               7
Page 8
CIGARETTE
INDUSTRY &
GG VOLUME
DEVELOPMENT

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  I N D U ST RY SA L E S VO LU M E BY S EG M E N T
  ( S O U R C E : N I E L S E N C U R R E N T M A R K E T D ATA )
                                                                                  Full year 2022 to 2024
                                       258.5 bn
                   249.3 bn          3.7% increase    244.3 bn                   Jan-Jun 2024 and 2025
                 3.7% increase                       5.5% decline
                                        4.6%
SPM & SPT           4.6%
                                                         4.4%
  SKM LT            21.4%                25.5%
                                                       23.1%


                                                                      122.6 bn
                                                                                        112.8 bn
                                                                     5.7% decline
  SKM HT            51.3%               42.8%          41.4%                           7.9% decline
                                                                         4.4%
                                                                                           4.4%
                                                                        23.6%             22.5%
                                                                        41.8%             41.0%
                                        27.1%           31.1%
SKT & SKL           22.7%
                                                                        30.1%             32.1%

                    2022                 2023           2024        Jan-Jun 2024      Jan-Jun 2025
Notes: Figures may not foot due to rounding                                                           9
Page 10
INDUSTRY SALES VOLUME: Change Jan-Jun 2025 vs Jan-Jun 2024
(SOURCE: NIELSEN CURRENT MARKET DATA)

                                Depressed buying power due to stagnant salaries and higher cost
Overall     Decline 7.9%        of living. The Indonesian economy is not isolated from the impact
                                of geopolitical tensions.
                                SKT relatively less affected by weaker buying power. SKT
SKT & SKL   Decline 2.1%
                                remains cheaper due to lower excise duty.

SKM HT      Decline 9.7%
                                SKM segment - higher price increases due to higher excise
                                duty - remains most impacted in total sales volume.
SKM LT      Decline 12.0%

SPM &
            Decline 9.6%        Less than 5% of the total market.
SPT


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G G VO LU M E D E V E LO P M E N T
                                                                                   Sales mix by volume:
                        61.4 bn
                      25.6% decline                                              Full year 2023 and 2024
   SKM LT                  0.4        0.7%      53.1 bn                           Jan-Jun 2024 and 2025
                                              13.5% decline
                                                  0.3     0.6%



                                                                    27.8 bn
  SKM HT                  52.5     85.5%                          14.4% decline          23.7 bn
                                                 44.7     84.1%        0.2    0.6%     14.9% decline
                                                                                           0.1     0.6%

                                                                     23.4     83.9%
                                                                                          20.1   85.0%


 SKT & SKL                 8.4     13.7%          8.1     15.3%
                                                                      4.3     15.5%        3.4   14.4%

                          2023                  2024              Jan-Jun 2024        Jan-Jun 2025

Notes: Figures may not foot due to rounding                                                               11
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COMPANY
FINANCIALS


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G U DA N G G A R A M P E R F O R M A N C E H I G H L I G H TS
( U N A U D I T E D ) 6 M O N T H S D ATA
Income Statement highlights           Jan - Jun
& Margin Analysis (Rp billions                                                            Comments
unless otherwise stated)            2024          2025

                                                               Down 11.3% primarily due to 14.9% decline in sales volume in line
Sales Revenue                     50,019      44,369      President Commissioner
                                                                                        with overall decline in industry volume.
                                            JUNI SETIAWATI WONOWIDJOJO

Cost of Revenue                  (44,950)   (40,581)                                  Down 9.7% in line with lower sales volume.

Gross Profit                       5,069          3,788      Lower sales volume and increase in excise duty not accompanied by
Gross Margin (%)                    10.1%          8.5%                                       proportional sales price increases.
Operating Expenses (Selling,
                                   3,664          3,419                                                Down 6.7%. Well contained.
General & Administrative)

Interest Expense                     363           219                                                   Debt levels well managed.

Profit                               926           120            Reflects lower volume indicative of stagnant buying power and
Profit Margin (%)                    1.9%          0.3%          availability of cheaper alternatives, therefore lower profitability.

                                                                                                                                13
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I N CO M E STAT E M E N T: K E Y C O M P O N E N T S
ALL SHOWN AS % OF REVENUE
    Revenue          119.0 tr                                 As buying power remains depressed, the
                                                              benefits of zero excise increases for 2025
                                                                   have yet to fully contribute towards
                                        98.7 tr
                                                                                recovery in profitability.

Cost of Revenue –     73.3      61.6%
   Excise Duty

                                         73.6         74.6%
                                                                     50.0 tr
                                                                                           44.4 tr


Cost of Revenue -                                                     38.2      76.3%
     Others           31.1      26.1%                                                       32.9      74.1%

                                         15.6         15.9%
Operating Expenses                                                              13.5%                 17.3%
                       7.3      6.2%                  7.8%            6.8                   7.7
                                         7.7                                     7.3%                  7.7%
      Profit           5.3      4.5%            1.0   1.0%            3.7 0.9    1.9%       3.4 0.1    0.3%

                     2023               2024                     Jan-Jun 2024           Jan-Jun 2025          14
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FINANCIAL POSITION:                                                                                 Audited Year End 2024
ASSETS                                                                                  (Unaudited) 30 June 2024 and 2025

Rp billion                                     Year End 2024         30 June 2024           30 June 2025      YOY 30 June
                                                                                                           2024/2025 (Δ%)
                                                      President Commissioner
Cash                                                  3,706                     3,988             3,970            (0.4%)
                                              JUNI SETIAWATI WONOWIDJOJO
Receivables                                           1,841                     2,184             1,670           (23.6%)

Inventories                                          40,426                    42,248            37,034           (12.3%)

Other Current Assets                                  1,618                     1,509               567           (62.4%)

Total Current Assets                                 47,591                    49,929            43,241           (13.4%)

Fixed & Other Non-Current Assets                     37,348                    37,819            36,560            (3.3%)

Total Assets                                         84,939                    87,748            79,801            (9.1%)


Notes: Figures may not foot due to rounding                                                                        15
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FINANCIAL POSITION:                                                                           Audited Year End 2024
LIABILITIES & EQUITY                                                              (Unaudited) 30 June 2024 and 2025

Rp billion                                         Year End 2024         30 June 2024   30 June 2025      YOY 30 June
                                                                                                       2024/2025 (Δ%)

Short Term Bank Loans                                        9,375
                                                      President Commissioner    8,456         5,205           (38.4%)
                                              JUNI SETIAWATI WONOWIDJOJO
Payables (including taxes)                                  1,337                958            633           (33.9%)
Excise Duty, VAT & Cigarette Tax Payables                   8,407              12,522         8,844           (29.4%)
Other Liabilities                                           3,904               4,023         4,044             0.5%
Total Liabilities                                          23,023              25,959        18,726           (27.9%)
Shareholders Equity incl. Retained Earnings                61,917              61,788        61,075            (1.2%)

Total Liabilities & Shareholders’ Equity                   84,939              87,748        79,801            (9.1%)
Total Liabilities/Equity                                    37.2%              42.0%          30.7%


Notes: Figures may not foot due to rounding                                                                     16
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IMPACT OF EXCISE
DUTY INCREASES


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E XC I S E D U T Y DI F F E R E N T I A L S : between SKM & SKT
Excise duty (Tier 1 producers) for SKM have grown faster than for SKT: rising from a difference of
1.9 times to 2.9 times higher: a cumulative increase of over 100% between 2019 and 2024.

Excise Duty, VAT & Cigarette Tax per 12 stick pack in Rp.                                                                18,935

                                                                                                        16,976
                                                                                       15,267

                                                                      13,274
                                                     11,624

                     9,221           9,221
  8,316

                                                                                                                 6,250            6,623
                                                              5,466            5,466            5,903
          4,499              4,893           4,893




      2017               2018           2019            2020             2021             2022             2023             2024
Source: Company Annual Reports                                  SKM     SKT                                                       18
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T H E I M PAC T O F E XC I S E D U T Y I N C R EA S ES
• Excise duty differentials: excise duty on SKM Tier 1 producers has doubled
  over 5 years (2019 to 2024), driving up cigarette prices at a time when
  buying power has remained depressed resulting in a decline in industry
  volume by 5% (based on Nielsen data).
• Increased cigarette prices are causing consumers – particularly those with
  middle-lower incomes to migrate to cheaper alternatives such as the SKT
  segment, products from smaller producers and cigarettes without excise
  duty.
• SKT market share has grown from 17% to 31% of a smaller market over 5
  years (2019 to 2024) (based on Nielsen data).
• Government excise revenue targets in 2023 and 2024 were not achieved.
                                                                               19
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OUTLOOK



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O UT LO O K
1. Stagnant buying power has impacted the ability of producers to adjust for the
   significant increases in excise duty. Increasing prices to recover profitability when
   buying power continues to be depressed risks market share as smokers will migrate to
   cheaper alternatives. Gudang Garam has introduced new SKT variants in 2024.
2. A zero increase in excise duty for 2025 is welcomed after a cumulative increase of over
   100% in excise duty over the post COVID period. Prudent future excise duty
   adjustments, containment of cigarettes without excise duty and betterment of buying
   power will help the recovery of the cigarette industry.
3. Indonesia is experiencing slower economic growth, and, going forward, is not immune
   to geopolitical conditions.
4. Gudang Garam is committed to full regulatory compliance, sound corporate
   governance and consistent, reliable supply of quality products to customers throughout
   Indonesia.

                                                                                       21
Page 22
PUBLIC EXPOSE
   THANK YOU
                22

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