Transformation of SOE Ministry Annual Report 2020 slide image

Transformation of SOE Ministry Annual Report 2020

CHAPTER 1 2 3 4 5 6 7 SOE PORTFOLIO & CONSOLIDATED FINANCIAL PERFORMANCE REVIEW DIVIDEND, TAXES, NON-TAX REVENUE, & STATE EQUITY PARTICIPATION One of the measurements of SOES contribution to the sustainable economic development is indicated through the contribution of Dividends, Tax, and Non-tax revenue. In the last ten years (2011-2020), the amount of Dividend, Tax, and Non-tax revenue paid by SOEs to the state reached Rp3,295 trillion. In which Dividends, Taxes, and Non- tax revenue stood at Rp388 trillion, Rp1,872 trillion, and Rp1,035 trillion, respectively. The State Equity Participation in SOES in the same period stood at Rp147 trillion, or around 4% of total SOES contribution. MINISTRY OF STATE-OWNED ENTERPRISES ENERGY, OIL & GAS ANNUAL REPORT 2020 2020 Milestones Assets Composition of Energy, Oil & Gas Cluster - 31 December 2020 38% 0% > Establishment of Oil and Gas Holding at Pertamina › Cilacap Expansion II Coal Power Plant (PLTU) (1000 MW) started to operate 62% PLN Pertamina EMI > Launching of "Power Beyond Generations", PLN's transformation program › Launching of Diesel Power Plant (PLTD) to NRE power plant conversion program 12% Dividend Despite the pandemic, the amount of dividend from 2019 profits from SOEs across 13 clusters in 2020 reached Rp69.44 trillion. The portion of dividends paid to the State Budget was Rp43.9 trillion, reflecting the government's share ownership in SOEs that distribute dividends. 2 In the last 10 years, SOES has contributed Rp3,295 trillion to state revenue (dividends, other non-tax revenue, and taxes) Total Taxes, Dividend and Other Non-Tax Revenue (2011-2020 in Rp trillion) 31% O 57% Financial Parameter > Rp Billion 2020 2019 Revenue Operating Income EBITDA EBIT NOPAT Net Profit 929,035 1,077,120 101,219 85,054 183,628 180,173 89,364 99,771 56,829 51,283 15,006 12,963 > 2020 Performance Analysis The COVID-19 pandemic has declined energy sales volume, where fuel sales dropped by 14.1% and electricity sales volume decreased by 0.8%, which resulted in decreased revenue by 13.7% to Rp929 trillion in 2020. Nevertheless, PLN and Pertamina were still able to record a positive net profit. Operating profit margin and net profit margin in 2020 were 10.9% and 1.6%, respectively. Meanwhile, ROA, ROE, and ROIC were at 0.6%, 1.1%, and 2.7%, respectively. Composition of Manpower 2020 by: Gender 57,873 82% Taxes: Rp1.872 trillion Dividend: Rp 388 trillion Other Non-Tax Revenue: Rp1.035 trillion Total SOES Contribution: Rp 3.295 trillion Assets Invested Capital (A + B) 2,558,945 2,514,649 > 2,105,054 2,053,233 Weakening financial performance was a result of upstream assets impairment due to the declining global oil prices and exchange rate adjustment that led to a lower net profit margin. 18% 284 245 246 210 189 178 175 157 134 146 149 116 115 114 A. Financing Liabilities 727,058 694,628 > Current Non Current 122 B. Capital 71,028 75,451 656,031 619,177 1,377,996 1,358,605 In this Cluster, Pertamina contributed a total dividend of Rp4 trillion. Male Female > 86 86 53 57 34 40 37 37 45 43 44 28 31 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 50 44 Financial Performance Indicators Taxes The amount of tax paid by SOEs to the state in 2020 was recorded at Rp246 trillion, or lower compared to Rp284 trillion recorded in 2019. The decline is attributed to the COVID-19 pandemic that impacted the performances of the state-owned companies in 2020, as in 2019 the pandemic had not yet occurred. Non-Tax Revenue The amount of non-tax revenue paid by SOEs in 2020 stood at Rp86 trillion, approximately the same as the 2019 figure. State Equity Participation 2020 was a critical year for several SOEs. Due to weakening economic activities, several SOES experienced difficulties both in terms of financial structure and liquidity. Therefore, additional cash SEP was needed to strengthen their capital structures and provide liquidity assistance. The total amount of SEP in 2020 (including SEP for the National Economic Recovery/SEP PEN) stood at rp27.3 trillion represented 60% of the total dividends contributed by SOES to the State Budget. Operating Margin 10.9% 7.9% > EBITDA Margin 19.8% 16.7% Net Margin 1.6% 1.2% ROA 0.6% 0.5% ROE 1.1% 1.0% > Cash SEP, Non Cash SEP & Cash SEP for PEN Year 2020 ROIC 2.7% 2.5% SEOs Name Total SEP (Rp trillion) (%) Total Gearing Ratio & Capital Structure Debt to Invested Cash SEP 34.5% 33.8% Capital PLN HK 5.0 18.4% Debt at EBITDA 4.0x 3.9x 3.5 12.8% EBITDA to Interest PNM 1.0 3.7% 4.4x 4.7x Coverage Non Cash SEP BPUI 0.3 1.0% Cash SEP for PEN HK BPUI 7.5 27.5% 6.0 22.0% Biofarma PNM ITDC Total SEP 2.0 7.3% 1.5 5.5% 0.5 1.8% 27.3 100.0% Dividend to 43.9 60.0% State Budget Dividend Surplus over SEP 16.6 40.0% Assets & Liabilities As of December 2020, the Cluster recorded total assets of Rp2,559 trillion, with 1,986,059 MBOE oil and gas reserve units and 63,336 MW electricity production capacity. Debt increased to Rp727 trillion as of December 2020, contributed by the increase in bond payables and lease capitalization due to SFAS 73 implementation. Debt to Invested Capital, Debt to EBITDA, and EBITDA to Interest Coverage were at 34.5%, 4.0 times, and 4.4 times, respectively. These ratios were still within the ratio target of SOE Ministry. Education 59% 57,873 5% 36% ≤D3 Bachelor Degree Post Graduates Age 0.3% 19% O 57,873 81% <45 45-55 >55 60 RESILIENCE AMIDST UNCERTAINTY RESILIENCE AMIDST UNCERTAINTY 61
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