Each of the above risk will be addressed in detail in Chapter V of this Prospectus regarding the Business Risks.
6. Competitive Advantage
The Company and its subsidiaries have a major competitive advantage as follows:
- Having quality of coal with calorie 5,200-6,100 kcalkg adb in accordance with the market requirements.
- Having a large amount of resources as much as 1.9 billion tons of thermal coal and coal reserves for 849 million
tons. - Managed by a management team which is qualified and
experienced in the coal mining business. - Having a coal production costs which are relatively low.
7. Business Strategy
The Company and its subsidiaries continue to strive to improve performance and achieve sustainable long term growth.
To achieve this goal, the Company and its subsidiaries set the key business strategy that includes:
- Increased production of coal
- Increased mining cost efficiency - Development and improvement of customer relationships
- Expansion of the market distribution network
- Increased amount of resources and coal reserves - Improving the quality of Human Resources
- Updating the technology - Development of good relations with local communities.
8. Summary of Financial Highlights
The following table illustrates the Companys important financial data which is outlined based on the Consolidated
Financial Statements of the Company and its subsidiaries for the period of 6 six months ended June 30, 2011 and the years
ended December 31, 2010, 2009, 2008 and 2007 as audited by Public Accountant Firm Mulyamin Sensi Suryanto that expressed
unqualified opinions on those statements. Companys financial statement for the year ended December 31, 2006 as audited by
Public Accountant Firm Richard Risambessy Partners that expressed unqualified opinions on that statement.
in million Rupiah
Descript ion For t he
period of six mont hs
ended June 30, 2011
For t he years ended Decem ber 31 2010a
2009 2008
2007 2006b
Tot al Asset s 1,167,516
1,117,270 435,638
269,093 252,640
35,785 Tot al Liabilit ies
446,319 546,043
366,752 219,203
253,263 36,272
Tot al Equit y 721,197
571,227 67,163
49,890 623
487 Net sales
1,238,411 927,112
671,972 447,387
258,391 -
Cost of Goods Sold 834,339
679,383 435,304
248,779 142,425
-
Gr oss Pr ofit 404,072
247,729 236,668
198,607 115,966
- Profit Loss
164,020 33,961
3,722 14,246
16,987 492
in percent age Descript ion
June 30, 2011
Decem ber 31 2010a
2009 2008
2007 2006b
GROWTH RATIO Sales
295.17
c
37.97 50.20
73.14 n.a
n.a
d
Net Prof it Loss 1,005.70
c
4,616.56 88.93
163.27 1,792.68
n.a
d
Asset s 4.50
156.47 61.89
6.51 605.99
n.a
d
Liabilit ies 18.26
48.89 67.31
13.45 598.23
n.a
d
Equit y 26.25
750.51 34.62
8,108.03 27.93
n.a
d
BUSINESS RATIOS Gr oss pr ofit loss sales
32.63 26.72
35.22 44.39
44.88 n.a
Net prof it loss sales 13.24
3.66 0.55
3.18 6.57
n.a Net
profit loss equit y
ROE 22.74
5.95 5.54
28.55 2,726.65
101.03
Net profit loss t ot al asset ROA
14.05 3.04
0.85 5.29
6.72 1.37
FINANCIAL RATIOS times Tot al liabilities t ot al asset s
0.38 0.49
0.84 0.81
1.00 1.01
Tot al liabilities equit y 0.62
0.96 5.46
4.39 406.52
74.48
Note: a Restated in connection with the acquisition of MAL, which
is restructuring transactions of entities under common
control thus performed in the same manner by the method of pooling of interests.
b The Company’s financial statements only. c Growth ratios of Sales, Gross Profit, and Profit Loss
for period of 6 six months ended June 30,2011 compared with same period in 2010 unaudited.
d Growth ratios of Sales, Gross Profit, Net Profit Loss, Total Assets, Total Liabilities and Total Equity to year
ended December 31, 2006 compared to year ended December 31, 2005 can not be stated as Financial Statements for
the year 2005 which ended December 31, 2005 is not presented.
n.a. Not comparable.
9. Dividend Policy
