Dear Shareholders and Stakeholders,

By gratitude and thanks to God Almighty, The Board of Directors of PT WIjaya Karya Beton Tbk hereby submits its Annual Report for the 2025 Fiscal Year to its shareholders and all stakeholders. The year of 2025 was crucial for the Company in strengthening its business quality through performance consolidation, strengthening operational discipline, and directing a sustainable long-term transformation.

Amidst the increasingly demanding dynamics of the construction industry, the Company is focusing its strategic steps on improving revenue quality, more effective asset and debt management, and strengthening governance and risk management. This approach reflects the Company's commitment to build a foundation for healthy, measurable, and sustainable growth, rather than merely pursuing short-term expansion.

The year 2025 will be a phase of business quality consolidation, when the construction market becomes increasingly selective and financial resilience is determined by execution discipline, not just the addition of contracts. The Board of Directors is focusing on revenue quality, payment certainty, and accelerating the conversion of work into cash through project administration discipline, strengthening receivables control, and risk-based project selectivity. This direction places governance and risk management as daily working mechanisms to maintain liquidity, improve backlog quality, and prepare for healthier growth in 2026.

We recognize that the Company's achievements throughout 2025 are inseparable from the collaboration of all stakeholders, including the Board of Commissioners, management, employees, business partners, and the continuous support of shareholders. This collaboration is a key strength in maintaining the Company's stability against changes in the business environment.

MACROECONOMIC REVIEW 2025

The year 2025 marks a phase of global economic adjustment amid trade fragmentation, policy uncertainty, and persistently high geopolitical risks. The International Monetary Fund (IMF) projects global economic growth of 3.2% in 2025, slowing from 3.3% in the previous year, meaning that pressure on trade flows and investment decisions will continue.

The Indonesian economy maintained its resilience with 5.11% growth (c-to-c) in 2025, according to the Central Statistics Agency (BPS). BPS recorded the highest growth in the Other Services sector (9.93%) and growth in the Goods and Services Exports component (7.03%), keeping economic activity on an expansionary track. Price stability remains intact as the BPS recorded December 2025 inflation at 2.92% (y-on-y) and 2.92% (y-to-d), with core inflation at 2.38% (y-on-y).

External performance remained solid as BPS recorded exports from January to December 2025 at US$282.91 billion and imports at US$241.86 billion. The government also reported the 2025 Rupiah exchange rate at 16,475 (ytd) and 16,782 (eop) as of December 31, 2025, meaning that exchange rate volatility still needs to be managed through hedging discipline and cost control.

Bank Indonesia eased monetary policy by lowering the BI Rate to 4.75% in September 2025 and maintaining it in December 2025 to maintain stability while encouraging growth. The government maintained fiscal space as the provisional realization of the 2025 state budget deficit was recorded at 2.92% of GDP, so that priority spending and infrastructure could still be encouraged in a measured manner.

CONSTRUCTION INDUSTRY REVIEW 2025

The national construction industry continues to play a strategic role in driving economic growth, strengthening connectivity, and improving the quality of public services. Development activities are proceeding with a more selective dynamic, so that the success of business actors is not only determined by the availability of projects, but mainly by execution discipline, cost control, and cash flow resilience.

The government continues to prioritize infrastructure development in its spending, with infrastructure development realization as of September 30, 2025 reaching Rp170.1 trillion or 42.3% of the Rp402.4 trillion budget ceiling. At the implementation level, the Ministry of Public Works reported a 2025 budget ceiling of Rp116.23 trillion and financial realization reaching 95.23% of the effective DIPA ceiling, accompanied by a physical achievement of 95.17%.

From a financing perspective, the reduction in the BI Rate to 4.75% in September 2025 opens up room for improvement in funding costs, although transmission to the construction sector remains influenced by project portfolio quality and payment certainty. From a cost perspective, the IHPB for the Construction Group in December 2025 increased by 2.06% (yoy). Overall, 2025 emphasizes the importance of strengthening project governance, productivity, and risk management to maintain the industry's performance and competitiveness.

PERFORMANCE ANALYSIS 2025

Throughout 2025, WIKA Beton improved its performance through two main tasks: “bankable” sales and disciplined operational execution. In the President Commissioner's presentation that recapped 2025, management emphasized a shift in focus from simply pursuing sales volume to sales that generate cash, with control of accounts receivable, optimization of assets, and standardization of cross-functional work processes as execution priorities.

By the end of 2025, the Company faced performance pressures reflected in a decline in revenue and net income compared to the previous year. The Company reported revenue of Rp3.59 trillion and net income of Rp4.12 billion, down from Rp4.90 trillion and Rp64.20 billion in 2024. Despite the pressure on profitability, the Company maintained its financial structure by recording assets of Rp6.29 trillion, liabilities of Rp2.60 trillion, equity of Rp3.69 trillion, and new contracts worth Rp4.01 trillion. These achievements indicate that the Company still possesses a solid financial foundation and a strong order pipeline that supports business continuity.

The stable share of infrastructure supported by private contributions indicates a more selective pipeline strategy: the Company pursues high-value projects with smooth payments, while expanding its customer base to reduce the risk of demand concentration.

The Company confirms its focus for 2025 on optimizing factory utilization and production process efficiency without increasing capacity, with a total installed capacity of 10,924,705 tons per year (precast 4,782,500 tons; ready mix 6,142,205 tons). On August 27, 2025, the Company launched W-HOME as a precast housing innovation that expands the spectrum of concrete-based solutions. The Extraordinary General Meeting of Shareholders on June 26, 2025 approved the addition of the electrical installation business (KBLI 43211) as a step to diversify the business portfolio. By the end of 2025, the WIKA Beton Port facility also began operating as a contingency port starting December 20, 2025, to support smooth mobility and logistics during the Christmas and New Year peak season.

STRATEGY AND STRATEGIC POLICIES

The Company's strategy throughout 2025 is positioned as a phase of business quality consolidation and long-term transformation foundation. The Board of Directors has determined that WIKA Beton's continued leadership in the precast concrete industry is no longer determined solely by capacity expansion, but rather by business execution strength, revenue quality, and operational resilience. Therefore, the Company's strategy is directed at strengthening operational discipline, increasing the utilization of existing assets, and ensuring that every business activity contributes directly to financial health and business sustainability.

The main focus of the 2025 strategy is to strengthen business execution to maintain market position. The Company has placed factory utilization management, operational efficiency through the concept of minimum operation, and organizational restructuring as core policies. Adjustments to the work structure and product portfolio are made so that the Company remains adaptive to increasingly diverse project needs, while maintaining competitiveness amid fluctuating construction market pressures. With this approach, the Company emphasizes that operational performance stability is a key prerequisite before embarking on a broader expansion agenda.

The Company's strategy is also aimed at strengthening revenue quality. Project selection is carried out more rigorously by considering financial feasibility, payment certainty, and contribution to cash flow. This approach represents a shift in policy from a sales volume orientation to business transaction quality. Thus, the contracts obtained not only increase sales value but also improve cash structure and reduce the risk of bad debts.

In terms of business portfolio, the 2025 strategy emphasizes the diversification of value-added products and services. Product development, such as W-HOME, and business expansion through the addition of electrical installation activities are part of the policy to broaden the spectrum of solutions offered by the Company. This diversification is intended so that the Company does not solely rely on conventional infrastructure projects, but is also able to capture opportunities in the housing sector, integrated construction services, and technology-based concrete building solutions.

Sustainability and ESG are positioned as strategic elements that are integrated into business decision-making. ESG is not treated as a mere reporting obligation, but as an instrument to guide investment, product innovation, and risk management. In the environmental context, the Company's strategy includes accelerating material and energy-based decarbonization through increased substitution of environmentally friendly materials, strengthening the use of renewable energy, including ESCO scheme options, and exploring alternative future energy sources. On the operational side, water and waste management, including the reuse of rainwater and process water, is part of climate risk mitigation that directly impacts production sustainability.

To support more measurable ESG implementation, the Company is directing efforts toward strengthening its reporting systems and digital infrastructure. The sustainability roadmap is prepared in a more structured manner with annual targets, achievement indicators, and dashboard-based monitoring mechanisms. The information technology roadmap is positioned as the main enabler in providing reliable, integrated, and auditable data, thereby improving the quality of reporting and managerial decision-making.

The strategic direction for 2025 is summarized in three pillars:

1. Cash generation through project completion and accounts receivable control;

2. Operational excellence through process efficiency, digitization, and resource productivity;

3. Portfolio diversification through product development and expansion into the private sector.

These three pillars serve as a bridge between the recovered results of 2024 and the foundation for healthier growth in 2026.

The 2025 strategy is aimed at selectively winning the market by prioritizing transaction quality, payment certainty, and speed of end-to-end service execution. The marketing focus is not positioned as promotion, but rather as strengthening the data-driven pipeline, sharpening customer segmentation, and strengthening the value proposition through integrated services from planning to fulfillment. This approach strengthens credibility in the market because the offerings are supported by performance evidence, service standardization, and process transparency.

To improve revenue conversion into cash, marketing is directly linked to project documentation compliance, accelerated Handover Report (BAST) completion, and strengthened accounts receivable management as a series of commercial processes. At the same time, brand communication is directed towards proof (not promises), with consistent cross-channel messaging, strengthened brand governance, and expert content that highlights environmentally friendly concrete innovations and increasingly green manufacturing practices through thematic publication programs and research collaborations.

Overall, WIKA Beton's strategy and strategic policies for 2025 reflect a transition towards a company that emphasizes quality execution, financial resilience, and the integration of sustainability into its core business. This approach serves as a crucial foundation for building healthier, measurable, and sustainable growth in the coming years, while strengthening the Company's position as an adaptive provider of concrete solutions tailored to the demands of the modern construction industry.

The Role of the Board of Directors in Formulating Strategy and Strategic Policy

The Board of Directors of PT Wijaya Karya Beton Tbk (WIKA Beton) plays an active role in formulating the Company's strategy and strategic policy throughout 2025 by placing business quality enhancement as the top priority. The Board of Directors regularly evaluates financial performance, revenue quality, accounts receivable management, asset utilization, and operational effectiveness to ensure that the strategies formulated are in line with the Company's actual conditions and market dynamics.

In the strategy formulation process, the Board of Directors works collaboratively with the Board of Commissioners, top management, and work unit heads to gather cross-functional input, including commercial, operational, financial, information technology, and sustainability aspects. Each proposal is analyzed based on its business feasibility, risk implications, and contribution to the Company's long-term resilience.

Once formulated, the strategy and strategic policies are submitted to the Board of Commissioners for approval, then communicated to all levels of management and shareholders as guidelines for the Company's operational implementation.

Processes Implemented by the Board of Directors to Ensure Strategy Implementation

The Board of Directors of PT Wijaya Karya Beton Tbk (WIKA Beton) ensures the effective implementation of the 2025 strategy through a structured, measurable, and continuous control process. The Board of Directors places strategy implementation as part of the performance management cycle that is inseparable from daily operational activities. Each strategic policy is translated into work targets, performance indicators, and follow-up plans that serve as a reference for all work units.

To maintain consistency in implementation, the Board of Directors applies a Plan, Do, Check, and Action (PDCA) cycle-based control approach. At the planning stage, the approved strategy is translated into work programs, budgets, and clear operational targets. The implementation phase focuses on project execution, operations management, and the implementation of efficiency policies, asset optimization, and revenue quality enhancement. The evaluation phase is carried out periodically through monitoring of financial and operational performance achievements, as well as other strategic indicators. Furthermore, the Board of Directors determines corrective measures and strategy adjustments if deviations from the established plan are found.

The process of monitoring strategy implementation is also carried out through a structured, tiered management meeting mechanism. Special Board Meetings, Limited Board Meetings, and Board Meetings with Division Managers serve as the main forums for evaluating work program progress, discussing operational obstacles, and agreeing on necessary corrective measures. Every decision and commitment resulting from these meetings is systematically documented as a basis for control and follow-up.

Through this process, the Board of Directors ensures that the strategy does not stop at the formulation stage, but is actually implemented in a disciplined, adaptive manner that is in line with the objectives of strengthening the quality of the business and the sustainability of the Company.

Comparison Between Achieved and Targeted Results

The comparison between achieved and targeted results is an important part of the Company's performance evaluation. The Board of Directors consistently compares the performance realization throughout the 2025 fiscal year with the Company's Work Plan and Budget (RKAP) that was set at the beginning of the year as a basis for assessing the effectiveness of strategies and the quality of execution.

Throughout 2025, market dynamics and tightening business quality caused several performance indicators to be measured not only in terms of volume achievement, but also in terms of revenue quality, cash flow resilience, and operational efficiency. Therefore, the evaluation did not only focus on the difference between the target and actual figures, but also on the alignment of performance with the business quality consolidation strategy set by the Board of Directors.

A detailed comparison between the 2025 targets and actual results is presented in the following section as a basis for assessing the Company's performance.

Obstacles Encountered and Its Adjustment

Throughout 2025, PT Wijaya Karya Beton Tbk (WIKA Beton) faced challenges that reflected changes in the nature of the construction market from a phase of expansion to a phase of consolidation and tightening of business quality. One of the main challenges was pressure on revenue due to weakening demand for projects in several segments and increasing market selectivity. The company no longer faces the challenge of simply obtaining contracts, but must ensure that each contract obtained has adequate financial quality, especially in terms of payment certainty and contribution to cash flow. This condition requires a change in approach from a volume orientation to a business transaction quality orientation.

The next obstacle relates to accounts receivable management and converting revenue into cash. The nature of the construction industry, which has a long billing cycle, remains a structural challenge. In 2025, this issue will become even more crucial as revenue pressures mean that any delay in payment will have a direct impact on the Company's liquidity and financial flexibility. Performance quality is no longer measured solely by sales achievements, but by the ability to complete work on time and collect payments effectively.

On the operational side, the Company also faces challenges in maintaining optimal asset utilization and production capacity. With large installed capacity, low utilization will directly reduce cost efficiency and increase fixed costs per unit of production. Therefore, the main obstacle is not limited capacity, but the ability to manage production volume adaptively to market demand fluctuations. Pressure from energy, raw material, and logistics costs further reinforces the urgency to run increasingly efficient operations.

Another challenge arises from the increasing complexity of ESG implementation. By 2025, ESG will no longer be treated solely as a reporting obligation, but will have entered the realm of business decision-making, investment, and risk management. This change has consequences in the form of a need for more accurate data, more mature reporting systems, and the ability to manage the balance between public transparency and the protection of strategic company information. Without adequate system readiness, ESG implementation has the potential to become an administrative burden rather than a tool to strengthen competitiveness.

To respond to these obstacles, the Company has implemented a series of integrated solutions. In the commercial aspect, the Board of Directors has tightened project selection by considering financial feasibility, payment certainty, and contribution to cash flow quality. This approach aims to ensure that new contract growth does not sacrifice liquidity stability. In parallel, the Company is strengthening work completion discipline and accelerating billing as part of strengthening revenue quality.

In the context of construction, accelerating the Handover Report (BAST), a formal handover document that is a prerequisite for billing, is the main lever for shortening the gap between completion of work and cash disbursement.

In operational terms, the Company implements minimum operation policies and optimizes factory utilization. The focus is on cost efficiency, energy consumption control, and increased productivity per unit of capacity. Optimization of existing assets, including logistics and port facilities, is also part of the strategy to improve supply chain efficiency and reduce distribution costs.

In terms of sustainability, the Company integrates ESG into its business policies through the acceleration of material and energy-based decarbonization, strengthening water and waste management, and exploring the use of renewable energy. To support this, the Company has begun to prepare a more structured sustainability roadmap, including the need for reporting systems, monitoring dashboards, and strengthening information technology infrastructure as enablers of data-driven decision making.

Overall, the challenges faced by WIKA Beton in 2025 are not merely technical or operational in nature, but rather reflect the maturing of its business model. Through strengthening execution discipline, improving revenue quality, optimizing assets, and integrating ESG into the core of corporate management, the Company is building a more solid foundation to ensure business resilience and sustainable performance in the coming period.

OVERVIEW OF BUSINESS PROSPECTS

WIKA Beton's business prospects for 2025–2026 are determined by two main drivers, namely the direction of domestic construction demand and disciplined project execution that converts backlog into cash flow. From a macro perspective, Bank Indonesia forecasts Indonesia's economic growth in 2026 to increase to a range of 4.9%–5.7%, driven by rising domestic demand and a stronger policy mix to maintain stability while promoting growth. In line with this, the KSSK also presented an increased growth forecast for 2026, indicating that there is still room for recovery in the real sector as long as financial system stability is maintained.

At the industry level, continued government infrastructure spending remains the anchor of demand, although priorities and implementation rhythms may fluctuate in line with the refinement of government programs. In the context of 2026, the most operational indicator to look at is the 2026 Ministry of Public Works budget ceiling of Rp118.5 trillion, including large allocations for roads and water resources, which reflects the continuing need for road, connectivity, and water/food security projects. On the fiscal side, the official 2026 Draft State Budget/Financial Note document is the primary reference for narrating the direction of state spending and development priorities that affect the project pipeline.

Against this background, WIKA Beton's opportunities are supported by strong demand in the large-scale project sector. Contract data for 2025 shows a value of Rp4.0 trillion, with the main exposure in infrastructure and contributions from other sectors such as industry and electricity, so that demand is not concentrated in just one type of project. The customer portfolio also shows a spread across state-owned enterprises/utilities and industrial players, which can be a source of repeat orders when project execution is consistent.

However, the Company continues to emphasize its “execution engine.” The RKAP emphasizes that the conversion of backlog and execution of terms are key to sustained growth towards 2026, especially given the back-loaded nature of realization. Therefore, accelerating Handover Report (BAST) (Handover Reports) is a critical step, as Handover Report (BAST) is the basis for sales recognition and an important attachment to billing documents. Strengthening cash collection is in line with the projected improvement in customer cash receipts in 2026 and the project effectiveness strategy to improve the quality of operating cash flow.

Entering 2026, the Company has set a number of targets as outlined in the 2026 RKAP, including:

IMPLEMENTATION OF CORPORATE GOVERNANCE

Throughout 2025, PT Wijaya Karya Beton Tbk (WIKA Beton) continues to strengthen the implementation of good corporate governance as the main foundation in maintaining business sustainability amid the increasingly complex dynamics of the construction industry. The Board of Directors ensures that the principles of transparency, accountability, responsibility, independence, and fairness are not only fulfilled as compliance obligations, but are truly internalized in the Company's decision-making and operational implementation processes. Corporate governance is positioned as a strategic instrument to maintain business quality, control risks, and strengthen stakeholder trust.

In 2025, the Board of Directors increasingly emphasized that integrity is a core element of business strategy. Integrity is not only interpreted as compliance with laws and regulations, but also as a fundamental value that shapes work culture, partnership relationships, and patterns of interaction with customers and business partners. All operational policies are directed to be in line with the principles of ethics, professionalism, and long-term responsibility to shareholders and the community.

The implementation of the code of ethics, internal control system, anti-corruption and anti-gratification policies, and Whistleblowing System (WBS) mechanism continues to be strengthened as the main pillars of governance. WBS is maintained as a secure and confidential reporting tool, enabling employees and external stakeholders to report alleged violations without fear. Through this system, the Company fosters an environment that encourages openness, prevents misconduct, and consistently enforces ethics.

In line with increasing business complexity and ESG implementation, the Company's governance in 2025 will also be directed towards integrating sustainability aspects into the risk management framework. ESG is not positioned separately from governance, but rather as part of strategic considerations in investment, product development, and operational and reputational risk assessment. With this approach, the Board of Directors ensures that business decisions are not only evaluated from a financial perspective, but also from their impact on the environment, society, and long-term governance.

To ensure that ESG strengthening does not stop at normative commitments, the Company uses a diagnostic assessment based on the S&P Global Corporate Sustainability Assessment (CSA) framework to map its position, identify disclosure gaps, and set priorities for policy and program strengthening. The assessment results direct the focus of improvement towards strengthening the sustainability oversight structure under the Board of Commissioners, strengthening the link between material targets and executive performance mechanisms, increasing the consistency of third-party verification for key metrics and supply chains, and refining the climate-energy-water-waste roadmap so that operational targets can be measured and audited more disciplined by 2026.

In terms of risk management, the Company continues to implement an integrated Risk Management System across all work units. Risk identification, measurement, and mitigation are carried out systematically to ensure that every project and operational activity is in line with the Company's risk appetite. This prudent approach supports a more disciplined project selection policy, so that only projects with financial quality and controlled risks can be implemented.

Governance is also strengthened through the development of information technology systems and infrastructure. In 2025, the Board of Directors placed the strengthening of the IT roadmap as the main enabler of data-based governance. The development of management dashboards, integrated reporting systems, and data quality enhancement are aimed at supporting more objective, measurable, and auditable decision-making. Technology not only serves to improve efficiency, but also acts as a control tool that ensures transparency and accountability in all business processes.

In relation to remuneration and performance evaluation policies, the Company continues to develop an approach that balances financial and non-financial aspects. The performance of the Board of Directors is evaluated not only based on financial achievements, but also on contributions to strengthening governance, sustainability, operational efficiency, and organizational development. Although the quantitative measurement system for the direct link between variable remuneration and long-term performance is still under development, the Company is committed to continuing to refine this mechanism as part of improving the quality of governance.

Overall, the implementation of corporate governance in 2025 reflects WIKA Beton's maturation as a business entity that increasingly emphasizes quality decisions, risk discipline, and operational integrity. By making governance a strategic pillar, the Company is building a strong foundation to support business transformation, sustainability integration, and healthy and sustainable growth in the future.

CHANGES IN THE COMPOSITION OF THE BOARD OF DIRECTORS AND THE REASONS FOR THE CHANGES

In 2025, there will be no changes in the composition of the Board of Directors, so the composition of the Board of Directors of PT Wijaya Karya Beton Tbk as of December 31, 2025 is as follows:

• Kuntjara - President Director

• Syailendra Ogan - Director of Finance, Human Capital, and Risk Management

• Agus Pramono - Director of Operations and Supply Chain Management

• Rija Judaswara - Director of Marketing and Development

• Verly Widiantoro - Director of Engineering and Production

APPRECIATION AND CLOSING REMARKS

The Board of Directors of PT Wijaya Karya Beton Tbk would like to express its highest appreciation and gratitude to the shareholders, Board of Commissioners, WIKA Beton employees, business partners, and all stakeholders for their trust, support, and continuous collaboration throughout 2025. Amidst the dynamic industry that demands caution and high discipline, the contribution of all parties has been a determining factor in maintaining the Company's resilience and sustainability.

We would like to extend our special appreciation to all employees who have demonstrated commitment, integrity, and professionalism in carrying out their duties. The dedication of WIKA Beton employees in strengthening the quality of execution, improving operational efficiency, and maintaining good governance values has become the main foundation in facing challenges and building market confidence.

The achievements made throughout 2025 are the result of solid synergy between responsible leadership, disciplined risk management, and consistent strategy implementation. The Board of Directors believes that the foundation that has been built through business quality consolidation and governance strengthening will be an important asset to drive healthier and more sustainable growth in the future.

With optimism and strong commitment, the Board of Directors affirms the Company's readiness to move to the next stage, create sustainable added value, and strengthen PT Wijaya Karya Beton Tbk's position as a reliable and competitive concrete solution provider.