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 INSURANCE & PENSION FUND Assets Composition of Insurance & Pension Fund Cluster 31 December 2020 20% 7% 66% -4% Taspen 3% Jiwasraya Asabri BPUI RIU Life Insurance Financial Parameter General Insurance > Rp Billion 2020 2019 Revenue Operating Income EBITDA EBIT NOPAT Net Profit 46,014 48,408 -3,517 -5,348 -2,965 -4,822 -3,517 -5,348 -2,899 -3,594 -2,974 -3,820 > Assets 431,988 391,127 Invested Capital (A + B) 12,905 15,299 > A. Financing 2,702 Liabilities Current 2,183 4,998 4,447 Non Current 519 B. Capital 10,204 551 10,301 > Financial Performance Indicators Yield on 4.8% Investment Combined Ratio Net Margin ROA ROE 4.0% 160.0% 143.0% -6.5% -7.9% -0.7% -1.0% -29.1% -37.1% > Gearing Ratio & Capital Structure Debt to Invested 20.9% Capital Debt to EBITDA EBITDA to Interest 32.7% -0.9x -1.0x -39.6x -21.3x Coverage > 64 Reinsurance MINISTRY OF STATE-OWNED ENTERPRISES ANNUAL REPORT 2020 2020 Milestones > The establishment of BPUI as the Insurance & Guarantee Holding to support the synergy of SOEs in the Insurance Cluster > Jiwasraya's policy rescue as per the approved Financial Restructuring Plan, such as through the establishment of PT Asuransi Jiwa IFG (IFG Life), policy restructuring and transfer, and SEP amounted to Rp20 trillion in 2021 › Contribution of PT Askrindo and PT Jamkrindo to the PEN guarantee program using the PEN SEP injected in 2020 amounted to Rp6 trillion TELECOMMUNICATION & MEDIA Assets Composition of Telecommunication & Media Cluster 31 December 2020 100% 0% 2020 Milestones > Launching of PeduliLindungi application to support the government in managing the COVID-19 pandemic › Launching of PaDi UMKM initiated by the Ministry of SOE > Telkomsel (a subsidiary of Telkom) invested Rp2.12 trillion into PT Aplikasi Karya Anak Bangsa (Gojek). Gojek is a leading on-demand platform in South East Asia and a pioneer of the multi-services ecosystem model that provides access to various services Telkom PFN Financial Parameter Rp Billion 2020 2019 Revenue Operating Income EBITDA Net Profit 136,477 135,582 45,481 43,979 74,373 67,157 45,481 43,979 34,152 31,880 29,566 27,595 > Assets 246,986 221,248 Invested Capital (A + B) 186,379 169,351 > A. Financing Liabilities Current Non Current B. Capital 65,463 52,085 24,680 18,216 40,783 33,869 120,916 117,267 2020 Performance Analysis > Total revenue in 2020 stood at Rp136.5 trillion or grew by 0.7% compared to 2019. EBITDA grew by 10.7% due to increased efficiency during 2020, as indicated by the decrease in operating, maintenance, telecommunication services expenses. Profit for the Year was posted at Rp29,6 trillion, or grew by 7.2% compared to 2019. This Cluster was the only Cluster that recorded an increase in profit in 2020. In 2020, Telkom's digital services business grew by 11.2%, in line with the increase in digital activities due to mobility restrictions imposed during the pandemic. Telkom managed 169.5 million subscribers of Telkomsel's cellular services with a 58.9% market share. Meanwhile, IndiHome's fixed broadband services had a total of 8.0 million subscribers or 82.3% market share. IndiHome network covered 96.5% or 496 districts across Indonesia. Composition of Manpower 2020 by: Gender 25,383 70% O Male Female 30% > Financial Performance Indicators Operating Margin 33.3% EBITDA Margin 54.5% Net Margin 21.7% 32.4% 49.5% 20.4% In the enterprise solution services, Telkom served 1,703 corporate customers, 339,182 MSME customers, and 935 government institutions. In the wholesale segment, the market share was 64%, with products such as Metro-E and leased line. Meanwhile, in the carrier traffic market, Telkom controlled 80% of voice interconnection. Education 27% 12% ROA ROE ROIC 12.0% 12.5% 24.5% 23.5% 18.3% 18.8% > In the tower business, Telkom had a market share of 23.9% through its subsidiary, Mitratel. Digital services consisted of a diverse portfolio classified into two groups: smart platform & e-commerce and digital contents. 25,383 Gearing Ratio & Capital Structure 61% > Debt to Invested 35.1% 30.8% Capital Telkom also managed venture capital funds through its subsidiary, MDI, which invested in digital startups. Debt to EBITDA 0.9x 0.8x > ≤D3 Bachelor Degree Post Graduates EBITDA to Interest 16.2x 15.7x Coverage 2020 Performance Analysis Total revenue posted by the Insurance and Pension Fund Cluster decreased by 4.9% to Rp46.0 trillion in 2020 compared to 2019, due to the lower insurance revenue mainly contributed by the discontinuation of guaranteed insurance products, a significant decrease in the number of insurance contracts at Jiwasraya, and declining number of active participants at Taspen. Insurance expense decreased by 8.1% in 2020 due to a decrease in insurance expense at Jiwasraya resulted from the declining number of insurance contracts, in line with Jiwasraya's restructuring program. These led to a decrease of consolidated loss of the Insurance and Pension Fund Cluster by Rp846 billion in 2020 compared to 2019. Assets & Liabilities Assets reached Rp432 trillion or increased by 10.4% compared to 2019, mainly contributed by an increase in investment securities, cash and cash equivalents and time deposits, and other current assets such as third party receivables. Investment securities grew by 7.3% to Rp284.3 trillion compared to 2019, with bonds comprised 56.6% of the total investment. In 2020, the Cluster recorded Rp421.8 trillion in liabilities, an increase of 10.8% compared to 2019. This was due to an increase of current liabilities at Jiwasraya and BPUI resulting from insurance claims of COVID-19. The accumulated pension contribution at Taspen and Asabri also increased, in line with the increase in investment assets. Higher insurance liabilities were also in line with the increase in claims and technical reserves. Yield on Investment was 4.8% in 2020, 4.0% higher compared to 2019 due to an increase of investment returns. The consolidated Combined Ratio reached 160% in 2020, increased compared to 2019. Realization of RBC/solvency was above OJK regulation of 120% except for Asabri and Jiwasraya. Composition of Manpower 2020 by: 35% Gender 65% O 8,547 Male Female Education 57,873 21% 10% ≤D3 69% Bachelor Degree Post Graduates Age 57% EBIT NOPAT 10% 8,547 33% <45 45-55 >55 RESILIENCE AMIDST UNCERTAINTY RESILIENCE AMIDST UNCERTAINTY > > ROA, ROE, and ROIC were 12.0%, 24.5%, and 18.3% respectively in 2020. Based on the ROIC and the cost of funds, this Cluster created an economic value added of 13.3%, the highest amongst the SOE Ministry's portfolio. Assets & Liabilities Debt was recorded at Rp65.5 trillion in 2020, rose by 25.7% compared to 2019 due to increased contract liabilities resulting from SFAS 72 implementation and increased lease liabilities resulting from SFAS 73 implementation. The debt to invested capital ratio was at 35.1%. Total assets in 2020 amounted to Rp246.9 trillion, increased by 11.6% compared to 2019, in line with the increase in infrastructure development, particularly cable and transmission networks; an increase in contract assets due to SFAS 72 implementation; and an increase in right-of-use assets due to SFAS 73 implementation. 26% 7% Age 25,383 <45 45-55 >55 67% 65
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