89.7 Laporan Tahunan | Semen Indonesia AR SI English 2014
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WHRPG Project: Optimizing Energy Efficiency Potential and Advancing Environmental Quality
Clinker burning process produces waste heat that can be used as source of power generator, producing electricity for own use. The Company has successfully utilized this energy potential from waste gas by installing WHRPG
in Semen Padang production site. WHRPG unit has been operating well and has proven to generate benefit of reducing electricity cost from PLN. It is also CER-certified for reducing CO2 gas emission in the amount of 43,000
tonnes per annum and has a potential as additional source of revenue. Considering the multiple benefits from WHRPG installation, construction of second installation is currently
underway. The Company is building a new WHRPG unit in Tuban production plant, East Java. Agreement for WHRPG construction in Tuban was signed in October 2013 at the JFE Engineering Corporation Headquarter in
Yokohama. The agreement is fully supported by the Japan Government and is under Joint Credit Mechanism JCM scheme, funding aid from Japan provided for companies in South East Asia with proven track record of developing
eco-friendly technology in order to mitigate impacts of green house gas. Pursuant to the agreement, WHPRG Tuban Unit will have sizeable capacity of 30.6 MW and construction started
on 22 October 2014. There are for key aspects relating to the second development of WHRPG: first, efficiency. Following project completion, the Company expects to save up to Rp120 billion per year in electricity cost, derived
from less electricity consumption from PLN by 152 million KWh per year. Secondly, utilization of waste heat from Tuban I-IV plants will reduce CO2 emission by 122 thousand tonnes annually.
Third is the job creation aspect. The overall project requires sufficient number of workers to complete construction period of an estimated 26 months. Aside from direct hiring for construction, 52 of equipment consists of local
supplies that also drive job creation. Fourth is transfer of technology; this second project is an opportunity for Indonesia and particularly personnel from Semen Indonesia to gain new knowledge and experience, therefore
WHRPG technology design can be done locally in the future.
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RESEARCH AND DEVELOPMENT
As part of corporate transformation process, the Company put efforts to strengthen research and
development activities. Integrating capabilities in subsidiaries, the Company launched Centre
of Research, as mentioned in “Corporate Transformation” section, which is part of Semen
Indonesia Centre of the Champs SICC initiative that seeks to capitalize the Company’s entire excellence
previously pooled in respective subsidiary. The goal is to build the Company’s competitive advantage
and ensure business continuity while maintaining environmental sustainability.
Semen Indonesia Centre of Research comprises three areas of core activities handled by three
Departments, namely: Technology and Product Research Development; Energy, Material and
Environment Research Development; and Product Application Research Development.
Energy, Material and Environment Research Development is focused on conducting research
and development activities in the field of energy conservation, use of alternative fuel and raw
material, and environmental conservation. This unit serves as the centre of innovation in Energy,
Material, and Environment within the Company. Technology and Product Research Development
is focused on developing production technology for enhanced effectiveness and efficiency. This unit also
develops cement products that meet customers’ needs and serves as the centre of innovation for
the Company’s cement products and production technology.
Product Aplication Research Development is focused on developing the best product application
to answer customers’ needs. This is the Company’s centre of innovation in developing cement product
application. This unit also supports development in cement downstream products, such as ready mix
concrete, precast, prestress, property, and other types of application.
Overall, activities in the three units aim to address the various challenges that the Company faces,
including: increase of energy cost, limited availability of raw materials, demands for environmental
conservation, the need to develop a more effective and efficient production technology as well as
fulfilling customer needs that are increasingly specific for cement and derivative products. Through
research and development activities that are focused on specific fields, the Company is committed to
create competitive advantage and stay ahead of the competition.
Research and Development programs are strategic steps to enhance the Company’s performance
through innovation, efficiency, and continuous improvement carried out consistently and sustainably
to ensure the Company’s long-term growth. The results of these activities are believed to have enabled
the Company journeying through a challenging 2014 and assure that the Company will be able to seize
future opportunities as industry rebounds backed by high quality and reputable products.
Research and development activities in 2014 covered the following:
Product Development
Product research and development are performed to produce high quality products with efficient costs,
comprising:
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• Blended cement produt development: Portland
Pozzolan Cement PPC, Special Blended Cement SBC, and Portland Composit Cement
PCC implemented in all plants owned by the Company
• Research and development in product
application to support plant customers, ready mix, and projects
Of the total national production capacity, the Company accounts for 41.3, amounting to
29.5
million tonnes in 2014
Research in this filed has generated a number of application examples, among others:
• Porous concrete and Biopore that function as
pavement as well as water absorption medium, flowing water to soil
• Coloured concrete, construction cement with
color variation for decorative application. Use: outdoor paving, decorative application in
buildings. •
Self-compacting concrete, construction cement that is able to flow and set without vibrator;
suitable for buildings with close structure.
Packaging Development
The Company develops packaging for efficiency, mitigating effect of increasing prices of packaging
material and reduce the use of kraft paper that is associated with global warming, by:
• Increasing use of economical packaging
• Using two layers of kraft bags of 85 gsm
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• Experimenting with two layers of kraft bags of
80 gsm •
Using one layer woven to substitute 3 layers woven for market outside Java..
Raw Material and Fuel Research and Development
Activities in this field of development includes:
• Research and development activities in the usage
of raw materials, among others: fly ash, bottom ash, copper slag, gypsum purified, clay alumina,
paper sludge, spent earth, dust EAF, and others. •
Research and development for the use of alternative fuel:
ü Utilizing biomass as source of alternative fuel. Not only to achieve efficiency, this
initiaitve also reflects the Company’s commitment to mitigate impacts of green
house gas global warming. ü Production of RDF Refuse Derived Fuel
from municipal solid waste as source of environmentally friendly alternative fuel.
• Conduct study to identify new sources of fuel by
mapping potentials •
Upgrade production facility and add new coal mill to use low-calorie coal
• Apply and develop technology to upgrade low-
calorie coal to medium or high-calorie coal
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Intensifying RDF Project: Processing Municipal Solid Waste as Alternative Source of Energy and Improving Environmental Quality
Processing municipal solid waste into RDF Refuse-Derived Fuel includes materials that are not readily degradable in nature, such as: paper, plastic, fabrics, wood, used tyre, Styrofoam, and others. These wastes are processed into
new source of energy that is environmentally friendly. RDF is one of the Company’s strategic programs due to its significant positive impact, especially on environmental
sustainability. The implementation of RDF answers problems of having large volume of waste and limited area of landfill. With
RDF technology, the volume of wastes can be continually reduced by turning wastes into source of alternative fuel that can be used in production process i.e. clinker burning. Using wastes as source of fuel also reduces the cost
of provisioning fuel, especiall coal, and contribute to the improvement of environmental quality in big, medium, and small cities.
With its high calorific value at around 3,500-5,000 kcalkg, RDF is a new source of energy that is highly potential to be utilized as alternative fuel.
Energy Security and Efficiency
To ensure availability of energy supply for plant operational continuity and energy efficiency, the
Company carries out the following measures: •
Entered into long-term contract for coal provisioning with coal mining companies
• Entered into contract with PLN to secure
electricity supply and to maintain tariff •
Construted power generator 2 x 35 MW in Tonasa Plant.
• Implemented energy management.
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Environmental Research and Development •
Conducted periodical compliance control •
Improved efforts of resources conservation •
Increased housekeeping activities •
Applied EPR for each product sold •
Increased use of industrial wastes as AFR •
Intensified efforts to reduce CO
2
.
Awards in Research Development
As recognition for activities and innovations in research and development, in 2014 the Company
obtained the following awards: •
GREEN INDUSTRY Level 5 from the Ministry of Industry
• INDONESIA GREEN AWARDS 2014
• BUMN Award 2014
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Financial Performance Review
The following financial performance review reflects the Company’s operational results described under
the Operational Review chapter. Discussion and analysis on financial performance refer to the
Company’s Consolidated Financial Statements for years ended 31 December 2014 and 2013 as
presented in this Annual Report. The consolidated financial statements have been audited by Public
Accountant Firm Osman Bing Satrio Eny - Member of Deloitte Touche Tohmatsu Limited that presented
unqualified opinion for financial position of PT Semen Indonesia Persero Tbk and subsidiaries as of 31
December 2014, and for financial performance and cash flows for the same period, in accordance with
Financial Accounting Standards in Indonesia.
Backed by growing sales volume and competitive selling price of leading and reputable products, Semen Indonesia was able
to book growth of revenues by up to 10. Taking into account increase of production costs, the Company recorded 3.6 growth
of profit attributable to equity holders of parent entity in the amount of Rp5.6 trillion.
“
“
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Financial Performance Review
The interpretation of this financial review remain to take into account the elaboration on the notes of Consolidated Financial Statements that are integral to this Annual Report.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Table of Company’s Consolidated Statements of Comprehensive Income, 2014-2013 in Rp million, unless stated otherwise
ProfitLoss 2014
2013 Change
Revenues 26,967,035
24,501,241 10.1
Cost of Revenue 15,388,431
13,557,147 13.5
Gross Profit 11,598,604
10,944,094 6.0
Operating Expense 4,442,936
3,881,101 14.5
Operating Income 7,155,668
7,062,993 1.3
Profit Attributable to Equity Holders of Parent Entity 5,565,858
5,370,247 3.6
EBITDA Operating income outside revenues and other operating
expense, plus depletion, depreciation, and amortization 8,303,439
8,099,042 2.5
Total Weighted Average of Shares Outstanding in thousand
5,931,520 5,931,520
- Basic Earnings Per Share Rupiah
938 905
3.6
REVENUES
In 2014, the Company’s revenues grew by 10.1 from Rp24,501 billion in the previous year to Rp26,987 billion. Revenue contribution was primarily contributed by cement that accounted for 97.6 and other products that
accounted for 2.4. Company’s revenues by business segment
In Rp million, unless stated otherwise Revenues
2014 2013
Change Cement
26,335,351 97.6
24,151,908 98.6
9.0 Non-Cement
651,685 2.4
349,333 1.4
86.6 Total
26,987,036 100
24,501,241 100
10,1 Increase of cement revenue was mainly due to the growth of sales volume of increase of average selling price in
domestic and regional export market, as follows:
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Tinjauan Kinerja Financial Performance Review
Total sales volume and average selling price by market
Market Sales Volume ton
Change
2014 2013
Indonesia
26,163,372 25,410,341
3.0 Regional
2,362,994 2,405,157
-1.8 Total
28,526,366 27,815,498
2.6 Revenues In Rp million
Indonesia 25,610,861
23,369,656 9.6
Regional 1,376,175
1,131,585 21.6
Market Average Price Rpton
Change
2014 2013
Indonesia 978,882
919,691 6.4
Regional 582,386
470,483 23.8
Note: Excluding trial sales commissioning
In 2014, the Company recorded sales volume at 26.2 million tons or grew by 3.0 from 25.4 million tons in the previous year.
The increase of various price components associated with cost of revenue contributed 6.4 growth of average selling price in the domestic market to Rp979 thousandtons compared to previous year’s price see “Pricing Policy” section,
page 184.
The Company’s revenue grew by 10.1 to Rp
27.0
trillion. This growth was primarly contributed by growth of sales volume at 2.6 and
6.4
increase of average selling price of cement. In domestic market, the Company booked revenues at Rp25,611 billion or increased by 9.6 from the previous year
of Rp23,270 billion, while revenues from export grew by 21.6 to Rp1,376 billion compared to Rp1,132 billion in 2013. In 2014, the Company placed great attention to export market while maintaining its sales focus on domestic
market. Revenues
2014 2013
Change Domestic
Java 12,971,849
48.1 12,938,449
52.8 0.3
Outside Java 12,639,012
46.8 10,431,207
42.6 21.2
Overseas Asia
1,351,420 5.0
1,131,585 4.6
19.4 Europe
24,755 0.1
- -
- TOTAL
26,987,035 100.0
24,501,241 100.0
10.0
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Marketing region of Java contributed to Rp12,972 billion or 48.1 of the total Company’s revenues. This
contribution was up by 0.3 from the previous year figure of Rp12,938 billion. Meanwhile, marketing
areas outside of Java contributed Rp12,639 billion to total revenues or 46.8, an increased by 21.2
from 2013 figure of Rp10,431 billion. Revenue contribution from regions outside of Java was higher
than 2013 due to the growth of cement demand especially in Kalimantan and Sulawesi.
Java contributed
48.1
to total revenus while regions outside Java contributed 46.8 to the Company’s total revenues
The Company’s total sales volume in 2014, including export, was 28.5 million tons, increased by 2.6
from 27.8 million tons in 2013. Meanwhile, domestic sales volume reached 26.2 million tons, up by 3.0
from 25.4 million tons in the previous year.
COST OF REVENUE
The Company’s cost of revenue in 2014 amounted to Rp15,388 billion or increased by 13.5 from the
previous year of Rp13,557 billion. This increase was mainly due to the increase of the Company’s cement
production volume by 5 from 26.9 million tons to 28.3 million tons in 2014.
Main contributors to cost of revenue in cement production are fuels coal, electricity, distribution
costs, and packaging costs. Million Rp
Cost of Revenue 2014
2013 Change
Fuels 3,335,417
21.7 3,401,501
25.1 -1.9
Electricity 2,530,080
16.4 1,876,500
13.8 34.8
Distribution 2,422,649
15.7 2,120,327
15.6 14.3
Packaging 867,790
5.6 818,338
6.0 6.0
Manpower 1,372,373
8.9 1,398,625
10.3 -1.9
Maintenance 1,365,447
8.9 1,285,212
9.5 6.2
Other fabrications 3,494,676
22.7 2,656,643
19.6 31.5
TOTAL 15,388,431
100.0 13,557,147
100.0 13.5
The Company put in place various efficiency programs to manage the increase of cost of revenue
components.
The programs are as follows: • Energy cost
– The primary components of energy cost are fuels and electricity that accounted for 38.1 of the
total cost of revenue. –
Energy cost is the largest component in the Company’s cost of revenue structure, with
limited sources. Electricity base tariff for industry tariff group I-4 in 2014 was raised by 65 and
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impacted the increase of electricity cost per tons production by 27. Therefore, the Company
put serious efforts to manage this component, among others by:
• Controlling the composition of coal at the approprirate calorie levels to obtain efficient
price and maintain optimized level of heat consumption
• Adding new coal mill to use low calorie coal • Securing coal supply through long-term
contracts • Establishing subsidiary engaging in coal
mining sector • Building owned power plant, such as in
Tonasa • Utilizing waste heat from clinker burning
process by developing WHRPG Waste Heat Recovery Power Generator project that was
realized in Padang and is currently underway in Tuban
• Optimizing the use of alternative fuel sources. •
Distributions The Company’s effots to enhance cement
supply reliability to all customers impacted to the increasing volume of activities in terms of
delivery from warehouses to packing plants located throughout Indonesia, thus increased
cost of distributions. In order to reduce the increase of distribution
cost while maintaining supply delivery time and availability, the Company has carried out a
number of efforts, among others: • Synergize the distribution and marketing
activities of subsidiaries engaged in cement and cement distribution sector to supply
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cement to closest key markets see also “Synergy Program” section and “Revenue
Management.
• Optimize packing plants, build packing plant and cargo handling ports in strategic
areas to improve transportation and distribution efficiency see also “Packing Plant
Construction” section.
• Packaging
To address impact of increasing prices of packaging material, the Company continually
carries out packacing development for efficiency see also “Research and Developmen”,
packaging development. The efforts in
packaging research and development have proven to generate significant results; packacing
cost accounted for 5.6 to total cost of revenue in 2014, decreased from 6.0 in the earlier
year. •
Maintenance cost Maintenance cost in 2014 increased by 6.2
compared to previous year, primarily due to the increase of spare parts and imported equipment
prices due to weakened Rupiah exchange rate against US Dollar. The Company took the
period during low market demands to carry out additional repair work, therefore ensuring
sound utility level overall. •
Other Fabrication Costs This component increased by 31.5, mainly
due to the increase of depreciation from plant capitalization and increase of raw and indirect
materials, as well as cost of raw material transportation.
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Million Rp 2014
2013 Change
Revenues 26,987,035
24,501,241 10.15
Cost of Revenue 15,388,431
13,557,147 13.51
Cost of Revenue Tons RpTons -539,446
-487,395 10.51
Cost of Revenue Revenue 57.02
55.33 10.68
3.05
The Company’s efforts were able to maintain the increase of cost of revenue per tons product at
around 10.7, from Rp487 thousandtons in 2013 to Rp539 thousandtons in 2014. However, in terms
of cost of goods sold to sales, the ratio in 2014 stood at 57.0 or 3.0 higher from 55.3 in the previous
year. This was mainly due to the increase of average domestic selling price by 6, or lower than 8.36
inflation recorded in 2014. Synergy, efficiency, and innovative application efforts
that the Company has executed to maintain the increase of cost of revenue brought about positive
results. The Company will continue applying results of Research and Development, so that cost of revenue
can be further maintained and controlled through efforts around synergy, efficiency, and innovation.
Gross Profit
The Company’s gross profit in 2014 increased by 6.0 from Rp10,944 billion in 2013 to Rp11,599
billion in 2014, while gross profit margin stood at 43.0 compared to 44.7 in 2013. The 10.1
growth of Company’s revenues compared to previous year was unable to offset the increase of cost of
revenue.
OPERATING EXPENSE
The Company’s operating expense in 2014 was stood at Rp4,443 billion, increased by 14.5 from Rp3,881
billion in the previous year. The increase was primarily due to the increase of selling expenses by 17.9 to
Rp2,693 billion 2013:Rp2,283 billion, and increase of general and administrative expenses by 15.6 to
Rp1,952 billion 2013: Rp1,688 billion. Million Rp
Operating Expenses 2014
2013 Change
Selling Expenses 2,692,903
60.6 2,283,452
58.8 17.9
General and administrative expenses 1,951,961
43.9 1,688,257
43.5 15.6
Other operating revenue expense -201,928
-4.5 -90,608
-2.3 122.9
Other operating expenses -
0.0 -
0.0 -
TOTAL 4,442,936
100.0 3,881,101
100.0 14.5
Cost of Revenue 16.5
15.8 0.6
The main components of selling expenses in 2014 were transportation and handling amounted
to Rp2,097 billion 19.9, promotion Rp352 billion 17.5, and salaries, wages, and other
remuneration at Rp172 billion 4.2. The increase of selling expenses was primarily due to the increase
of transportation and handling cost in line with growing volume of cement delivery to customers.
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Million Rp
Selling Expenses 2014
2013 Change
Transport and handling 2,097,602
77.9 1,749,566
76.6 19.9
Promotion 351,850
13.1 299,335
13.1 17.5
Salaries, wages, and remuneration 171,595
6.4 164,737
7.2 4.2
Other selling expenses 71,855
2.7 69,815
3.1 2.9
TOTAL 2,692,903
100.0 2,283,452
100.0 17.9
To manage selling expenses, the management applied cost management strategy where sales were focused on areas with higher sales margin. Other efforts included distribution optimization and construction of packing plant to reduce
handling cost as well as transportation cost per tons distributed product.
General and Administrative Expenses
General and Administrative Expenses table Million Rp
General and Administrative Expenses
2014 2013
Change
Salaries, wages, and other remuneration 948,786
48.6 791,249
46.9 19.9
Partnership and community development programs
180,171 9.2
141,823 8.4
27.9 Maintenance
98,896 5.1
84,820 5.0
16.6 Other General and administrative
expenses 724,109
37.1 670,366
39.7 8.0
TOTAL 1,951,961
100.0 1,688,257
100.0 15.6
The primary components in general and administrative expenses in 2014 were salaries, wages, and other remuneration amounting to Rp949 billion 19.9, partnership and community development program amounting to Rp180 billion
27.0, maintenance Rp99 billion 16.6, and others. The increase of salaries, wages, and other remuneration was in line with the increase of total employees involved in the preparation of the new plants operations.
Concerning manpower expenses, the Management views this cost component as incentive tool to motivate performance improvement of individuals and the Company in general. The increase of manpower expenses was also
due to the organization of training programs to enhance employee competence, which was part of the Company’s investments.
The Company has applied performance-based remuneration policy, measured using balanced scorecard instrument and based on the achievement of key performance indicators KPI. The employee reward associated with performance
is one of the ways to measure the performance of investments in manpower see also “Employee Management, Performance Assessment” section.
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The increase of manpower cost component was due to the realization of training programs to enhance employee competence, which was part of the Company’s investments.
OTHER REVENUEEXPENSES
The Company posted other revenues amounted to Rp286 billion, up by 75.5 from Rp163 billion in
2013 that was due to the increase of interest income from placements of time deposits in rupiah and
foreign currencies. The increase of interest income was in line with the nominal amount of balance of the
Company’s fund placements at Rp4,475 billion from Rp3,767 billion at the end of 2013 see discussion on
Cash and Cash Equivalents. The financial expense increased by 12.6 to Rp383
billion from Rp340 billion in 2013, contributed by interest payables on borrowings for new plant and
power plant construction projects. Profitability and Margin million Rp
ProfitLoss 2014
2013 Change
Gross Profit 11,598,604
10,944,094 6.0
Gross Profit Margin 43.0
44.7 -1.7
Operating Income 7,155,668
7,062,993 1.3
Operating Income Margin 26.5
28.8 -2.3
EBITDA 8,303,439
8,099,042 2.5
EBITDA Margin 30.8
33.1 -2.3
Net income 5,565,858
5,370,247 3.6
Net Income Margin 20.6
21.9 -1.3
In 2014, the Company posted gross profit of Rp11,599 billion or grew by 6.0 compared to
previous year figure of Rp10,944 billion; operating income in 2014 amounted to Rp7,156 billion or
increased by 1.3 compared to Rp7,063 billion in the previous year, while EBITDA in 2014 reached
Rp8,303 billion or up by 2.5 compared to Rp8,099 billion in the previous year.
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Overall, profitability margin in 2014 was declining; gross profit margin stood at 43.0, operating
income margin stood at 26.5, and EBITDA margin stood at 30.8, while net income margin stood at
20.6. For the same indicators, the numbers in 2013 were 44.7 gross income margin, 28.8 operating
income margin, 33.1 EBITDA margin, and 21.9 operating income margin.
TAX EXPENSES
The Company’s income tax expense in 2014 amounted to Rp1,517 billion, or 3.1 lower than
Rp1,566 billion in 2013.
The Company meets requirements of eligibility for 5 reduction of Company Tax Income for each fiscal
year of 2014 and 2013, pursuant to the Government Regulation No. 81 of 2007.
Throughout the reporting year, the Company always meets its tax obligations and there were no tax
dispute that requires resolution.
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NET INCOME AND EARNINGS PER SHARE
Calculating tax expenses, the Company’s profit attributable to equity holders of parent entity
net income was amounted to Rp5,666 billion or increased by 3.6 from Rp5,370 billion in the
previous year. Net margin stood at 20.6, or lower by 1.3 from 21.9 in the previous year.
Earnings per share was Rp938 per share or grew by 3.6 from Rp905 per share in 2013, which reflected
the Company’s ability to generate and enhance value for shareholders.
COMPREHENSIVE INCOME FOR THE YEAR
The Company’s other comprehensive income derived from unrealized gains of investments of reserve
securities on hedging of cash flows, and difference in the statement of foreign currency. The Company’s
comprehensive income for the year after tax was stood at Rp5,587 billion, decreased by 4.5 from
Rp5,852 billion in 2013.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Consolidated Statements of Financial Position 2014 - 2013 in Rp million, unless stated otherwise
Current Assets 2014
2013 Change
Current Assets 11,648,545
42.3 9,972,110
32.4 168
Non-Current Assets 22,666,121
0.1 20,820,774
67.6 8.9
Total Assets 34,314,666
100.0 30,792,884
100.0 11.4
Current Liabilities 5,273,269
56.6 5,297,631
58.9 -0,5
Non-Current Liabilities 4,038,945
43.4 3,691,278
41.1 9.4
Total Liabilities 9,312,214
100,0 8,988,908
100.0 3.6
Equity attributable to: •
Equity Holders of the Parent Entity 24,042,038
96.2 20,882,543
95.8 15.1
• Non-Controlling Interests
960,414 3.8
921,433 4.2
4.2
Total Equity 25,002,452
100.0 21,803,976
100.0 16.8
ASSETS
As of 31 December 2014, the Company’s total assets was amounted to Rp34,315 billion, up
11.4 from the position of 31 December 2013 at Rp30,728 billion. The total assets consisted of 33.9
current assets and 66.1 non-current assets. This composition of assets changed from 2013, which
consisted of 32.4 current assets and 67.6 non- current assets.
Company Assets
11.4
34.3
trillion
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Financial Performance Review
The change of composition was due to the increase of current assets by 16.8 from Rp9,972 billion
in 2013 to Rp11,649 billion. On the other hand, position of non-current assets increased by 8.9
from Rp20,821 billion in 2013 to Rp22,666 billion in 2014. The details on changes in the accounts of
key financial positions that affected the change of current and non-current assets composition are as
follows:
Current Assets
Details of Current Assets in Rp million
Current Assets 2014
2013 Change
Cash and Cash Equivalents 4,925,950
42.3 4,070,493
40.8 21.0
Restricted Cash and Cash Equivalents
13,697 0.1
37,599 0.4
63.6 Short-Term Investments
91,872 0.8
104,835 1.1
12.4 Trade Receivables-Net
3,301,247 28.3
2,825,109 28.3
16.9 Other Receivables-Net
131,309 1.1
90,953 0.9
44.4 Inventories - Net
2,811,704 24.1
2,645,893 26.5
6.3 Advances
148,717 1.3
90,824 0.9
63.7 Prepaid Taxes
171,261 1.5
57,782 0.6
196.4 Prepaid Expenses
52,787 0.5
48,622 0.5
8.6
Total Current Assets 11,648,545
100.0 9,972,110
100.0 16.8
Current assets primarily consisted of cash and cash equivalents 42.3, trade receivables-net 28.3,
inventories 24.1, short-term investments 0.8, restricted cash 0.1, advances 1.3, and others
3.1. The composition changed from 2013, as described
in Current Assets Table above. The explanation on the causes of changes in current assets position is as
follows.
Cash and Cash Equivalents, and Restricted Cash and Cash Equivalents
Cash and cash equivalents are prudently managed using optimum cash cycle management and sound
portfolio management over the Company’s excess
cash, by taking into account risk and return that would generate optimum benefits.
Cash and Cash Equivalents in Rp million Cash and Cash Equivalents
2014 2013
Change
Cash 2,994
0.1 2,262
0.1 32.4
Bank Rupiah
280,572 5.7
198,729 4.9
41.2 US Dollar
55,082 1.1
83,481 2.1
-34,0 Euro
97,560 2.0
19,043 0.5
412.3 Singapore Dollar
123 0.0
197 0.0
-37.6 Dong Vietnam
15,053 0.3
14,014 0.3
7.4
Total Bank 448,390