Transformation of SOE Ministry Annual Report 2020
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SOE PORTFOLIO & CONSOLIDATED FINANCIAL PERFORMANCE REVIEW
MINISTRY OF STATE-OWNED ENTERPRISES
CONSOLIDATED FINANCIAL PERFORMANCE REVIEW OF SOE
Consolidated Financial Highlights of SOES 2020
Statement of Profil or Loss
Rp Billion
2020
ANNUAL REPORT 2020
2019
2,204,410
688,122
(414,505)
124,992
368,671
2019
Income Statement Analysis
Consolidated revenue in 2020
was reported at Rp1,930 trillion,
decreased by 12.5% compared to
2019. All clusters recorded declining
revenue due to the COVID-19, with
the greatest impact on the Tourism
and Services, Infrastructure, and
Logistics clusters.
Consolidated direct expenses
decreased by 12.8% (in line with the
decrease in revenue) to Rp1,321.9
trillion in 2020. Amongst components
of cost of goods sold, only the
allowance for impairment losses in
banks that recorded an increase by
18%, in line with the implementation
of SFAS 71 by SOES in the Financial
Cluster starting in 2020.
With a consistent decline in Revenue
and Cost of Goods Sold, the gross
profit margin remained at 31.5% for
the 2020-2019 period.
Operating Income decreased by
33.5% to Rp182 trillion. It was mainly
due to a significant increase in
Depreciation and Amortization
Expenses, which was mostly
contributed by an increase in
expenses due to the adoption of
SFAS 73.
Non-Operating Income and Expenses
in 2020 increased to Rp108.2 trillion,
mainly due to:
Net Foreign Exchange Loss
particularly at PT PLN (Persero)
and PT Pertamina (Persero).
Increase in Impairment Expense
due to impairment of oil and gas
assets at Pertamina.
•
Meanwhile, at PT Pertamina
(Persero), there was penalty
income from contracts, materials,
and claims of Rp 1.5 trillion, others
amounted to Rp988 billion, and
rental income of Rp560 billion.
Increase in Interest Expense due
to SFAS 73 implementation in 2020
that recognized interest expense
on Lease Liability.
The decrease in revenue and
increase in operating and non-
operating expenses
as described above
resulted in decreased
Profit for the Year by
89.4% to Rp13.3 trillion.
Financial Position
Analysis
Financial institution
assets in 2020 increased
by 10.7%, mainly due to
increased investment
in government bonds
in 2020 recorded by
SOES in the Financial
Services Cluster and the
Insurance Cluster.
Non-current Assets in
2020 increased due
Liabilities in 2020 amounted to
Rp5,837.2 trillion, an increase of
10.6% compared to 2019. In terms of
composition, Non-Current Liabilities
and Financial Institution Liabilities
increased by 21.7% and 9.5%,
respectively. Meanwhile, Current
Liabilities decreased by 1.3%.
The increase in liabilities in 2020 was
mainly due to:
Increase in lease liabilities (current
and non-current) of Rp129 trillion
due to SFAS 73 implementation that
required the capitalization of right-of-
use assets and lease liabilities.
Increase in financing liabilities by
Rp213 trillion to Rp1,557 trillion in
2020, of which Rp150 trillion resulted
from capitalization of leases due to
SFAS 73 implementation.
Increased debt-to-invested capital
ratio and composition
from 35.0% in 2019
to 38.6% in 2020. This
Despite the significant impact of the
COVID-19 to consolidated revenue
performance in 2020 and increase in expenses
following the implementation of SFAS 71, 72,
and 73 on consolidated financial statements,
the SOEs' portfolios have continued to report
net profit of Rp13.3 trillion in 2020.
Consolidated debt to capital ratio was
maintained at 38.6%, well within the ratio
threshold for investment grade companies.
to the capitalization of right-of-
use assets in connection with the
implementation of SFAS 73 in 2020
and the increase in intangible assets
such as toll road concession rights
posted by SOEs in the Infrastructure
Cluster.
Increase in customer deposits
of Rp224 trillion recorded by the
banking sector in the form of third-
party funds as a result of a decline in
public consumption patterns during
the pandemic.
figure is still below
the upper limit set by
the Ministry of SOE
at 45.0%. This upper
limit is adjusted with
the ratio in public
companies with an
investment grade
rating by Standard &
Poor.
Increased aggregate
debt-to-EBITDA from
3.6 times in 2019 to
5.6 times in 2020. The
increase was mainly
due to a decrease
in EBITDA resulting from lower sales
due to COVID-19. The Ministry of
SOE continued to monitor this figure,
especially in Clusters significantly
affected by the COVID-19 (Tourism
and Supporting Services and
Infrastructure).
Revenue
Cost of Goods Sold
Gross Profit
1,929,956
(1,321,980)
(1,516,288)
607,976
Operating Expenses
(425,963)
Operating Income
182,013
273,617
Other Income (Expenses)
(108,181)
(44,504)
Profit Before Tax
73,832
229,113
Ταχ
(60,539)
(104,121)
Net Profit
EBITDA
13,293
279,018
EBIT
174,841
287,478
NOPAT
104,760
199,395
Financial Position
Rp Billion
2020
Assets
Loans and Financing
8,311,899
2,389,018
Securities Investment
1,001,395
Financial Institution Assets
3,390,413
Fixed Assets
2,452,533
7,772,680
2,319,235
744,442
3,063,677
2,429,868
Invested Capital (A + B)
4,032,151
A. Financing Liabilities
1,557,483
Current
401,606
Non Current
1,155,877
B. Capital
2,474,668
3,837,858
1,344,468
391,592
952,876
2,493,390
Financial Performance Indicators
2020
2019
Gross Profit Margin
31.5%
31.2%
EBITDA Margin
14.5%
16.7%
Net Profit Margin
0.7%
5.7%
Return on Assets (ROA)
0.2%
1.6%
Return on Equity (ROE)
0.5%
5.0%
Return on Investment (ROI)
2.6%
5.2%
Gearing Ratio & Capital Structure
2020
2019
Debt to Invested Capital
38.6%
35.0%
Debt to EBITDA
5.6x
3.6x
EBITDA to Interest Coverage
3.1x
5.0x
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RESILIENCE AMIDST UNCERTAINTY
RESILIENCE AMIDST UNCERTAINTY
O
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