Report to the Shareholders Company Proile Management’s Discussion and Analysis Good Corporate Governance Corporate Social and Environmental Responsibility Consolidated Financial Statements

2-21 The Story of PGN 1. Highlights of 2014 Performance 24 Financial Highlights 24 Operating Highlights 24 Stock Highlights

2. Report to the Shareholders

29 Report from the Board of Commissioners 33 Report from the Board of Directors 41 Statement Letter of the Members of the Board of Commissioners and the Board of Director on Annual Report 2014

3. Company Proile

45 PGN’s Group Structure 46 Brief History 48 Business Activity 49 Business Structure 50 PGN’s Gas Source, Pipeline Network and Facility 52 Natural Gas for Nation 54 Organization Structure 56 Vision and Mission of the Company 58 Board of Commissioners Proile 60 Board of Directors Proile 62 Human Resources 68 Composition of Shareholders 70 Information of Subsidiary and Associated Companies 72 Subsidiary and Associated Companies 78 Stock Listing Chronology 79 Securities Listing and Credit Rating Chronology 80 Name and Address of Agencies and or Capital Market Supporting Professional 82 Awards and Certiication 86 Address of Business Units, Subsidiaries and Associated Companies 88 Signiicant Events in 2014

4. Management’s Discussion and Analysis

93 Management’s Discussion and Analysis

5. Good Corporate Governance

139 Good Corporate Governance 143 General Meetings of Shareholders 146 The Board of Commissioners 151 Independent Commissioners 152 The Board of Directors 160 Assessment of the Members of the Board of Commissioners andor Directors 162 Afiliated Relationships 162 Committees 177 Corporate Secretary 180 Internal Audit Unit 183 Internal Control System 183 Public Accountants 183 Risk Management 187 Corporate Ethics 196 Whistle-blowing System 200 Court Cases Involving PGN 203 Access to Information

6. Corporate Social and Environmental Responsibility

207 Corporate Social and Environmental Responsibility 210 Environmental Responsibility 216 Labor Practices 224 Occupational Safety and Health Practices 232 Social and Community Development 238 Product and Consumer Responsibility

7. Consolidated Financial Statements

245 Consolidated Financial Statements

8. Cross Reference BAPEPAM